CME Group's (CME) organic growth initiatives discussed during its Q3 earnings call are expected to help sustain earnings momentum into 2026, following an estimated 9% to 10% growth this year, Deutsche Bank said in a Thursday note.

The brokerage sees "revitalized" growth potential, particularly within the prediction markets segment.

Deutsche Bank raised its EPS estimates 6% to 9% across its forecast horizon and expects CME's valuation to improve. The analysts noted that CME shares have slightly outperformed peers and the broader market this year, while their valuation premium has narrowed from about 30% two years ago to roughly in line with the market.

CME shares have also tended to perform better in the first and fourth quarters over the past five years, making current levels a good entry point, the note added.

The brokerage upgraded the stock to buy from hold and increased its price target to $300 per share from $266.

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