** Derivatives exchange operator CME Group's CME.O shares inch up 0.7% to $254.20 premarket

** KBW upgrades CME to "outperform" from "market-perform"; maintains PT at $305, implying 20.8% upside to stock's last close

** Brokerage says recent selloff has made risk-reward "extremely attractive"

** Says perceived perpetual futures risk is overblown in general for exchanges and CME specifically given its low retail exposure and index licenses in equities products

** "As CME has come under pressure, we are seeing an improving volume backdrop, which we think can continue into 2H26 given our positive views on rates activity," KBW analyst Chris Allen says

** 8 of 17 brokerages rate the stock "buy" or higher, 6 "hold" and 3 "sell"; median PT $313 - data compiled by LSEG

** As of last close, CME stock down 7.5% YTD