Cboe Global falls after Morgan Stanley double downgrades to 'underweight'

Shares of derivatives exchange operator Cboe Global Markets CBOE.Z fall 1.9% to $216.13 premarket

Morgan Stanley double downgrades CBOE to "underweight" from "overweight"; cuts PT to $215 from $256, a 2.4% downside to stock's last close

Brokerage says sooner and better-than-expected tariff de-escalation with China reduces risk and volatility, which could limit upside to index option volumes on CBOE's exchanges

Sees slower option volumes growth ahead with more downside risk to estimates, which could weigh on valuation with CBOE's shares trading at a premium to recent years

4 of 19 brokerages rate the stock "buy" or higher, 12 "hold" and 3 "sell"; median PT $228.50 - data compiled by LSEG

As of last close, CBOE stock up 12.8% YTD