Goldman Sachs Lowering Estimates On CME Group

Goldman Sachs is lowering its earnings estimates on shares of CME Group Inc. CME, but it still has a Neutral rating and a $310 price target on shares. In a note to clients, Goldman Sachs writes, "We do not view the adjustments as material changes to our view on CME operating earnings; rather, we adjust our 2Q investment income to reflect a lower run rate after the non-recurring increase in dividend income from BM&F in 1Q (the majority of the $16 mn dividend income). In addition, we also increase our tax rate closer to 43% from 42%, in line with the firm's expectation of forward tax rates following the change in state-tax laws enacted earlier this year. For a summary of our changes, see Exhibit 1. We remain Neutral-rated on shares of CME Group." Shares of CME lost $4.49 on Friday to close at $294.50, a loss of 1.5%.