Deutsche Bank has changed its stance on CME Group Inc (CME) from hold to buy as of Thursday. The bank believes that several strategic organic growth initiatives will drive profitability for the derivatives market operator.

“It’s important to note that we view these new growth initiatives as a potential inflection point for the company’s organic growth, as they are enhancing capabilities that extend beyond traditional futures,” analyst Brian Bedell stated in a report to clients.

“One of the largest opportunities may come from increasing event contracts in the prediction market through a partnership with FanDuel, allowing access for other retail partners, thus creating significant revenue and profit growth potential,” he added.

Bedell also raised the stock's price target from $266 to $300, indicating a potential upside of 12% from Wednesday's closing price. CME Group's stock has risen nearly 17% year-to-date.