** Shares of exchange operator CME Group CME.O up 2.3% at $260.32

** Raymond James upgrades CME to "outperform" from "market perform"; assigns $287 PT, a 12.7% upside to stock's last close

** Brokerage says CME's risk management offerings position the firm well in a volatile macroeconomic and geopolitical backdrop, as reflected in strong QTD trading volumes

** Sees upside opportunity for CME's valuation given fading concerns about competitive landscape and the impact of rate cuts on trading volumes

** Raymond James says CME's energy futures business continues to serve as a tailwind as well, reversing several years of decline

** Seven of 18 brokerages rate the stock "buy" or higher, eight "hold" and three "sell"; median PT is $263 - LSEG-compiled data

** CME stock up 12% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))