Credit Suisse thinks Cboe Global Markets is a defensive addition to any portfolio during these volatile times. Analyst Gautam Sawant elevated Cboe to the bank’s top exchange sector pick, saying that shares should benefit from index options growth momentum as uncertainty and concerns of an economic slowdown linger. “We believe continued transactional growth, improved investor sentiment for defense and elevated Data and Access solutions growth can expand the firm’s valuation in 2023,” he wrote. Given this setup, Sawant views an attractive risk-reward for Cboe, with its valuation at just 18 times versus the 24 times forward multiple for the broader sector. Shares also look attractive given the mere 1.4% gain this year despite strong fundamentals. CBOE YTD mountain Cboe shares so far in 2023 The stock outperformed in 2022, falling just 3.8%. As options volumes expand in this environment, “CBOE’s entrenched index options complex is well positioned for growth amidst rapid customer adoption of short-dated, daily expiry and global demand for proprietary SP500/VIX options,” Sawant added. — CNBC’s Michael Bloom contributed reporting
