The Globe and Mail reports in its Wednesday, July 26, edition that RBC Dominion Securities analyst Geoffrey Kwan has lowered his recommendation for TMX Group to "sector perform" from "outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Kwan is sticking with his $34 share target. Analysts on average target the shares at $31.63. Mr. Kwan says his rating downgrade was in response to recent share price appreciation. Mr. Kwan says in a note: "TMX's shares now trade at approximately 20 times our NTM EPS [next 12-month earnings per share] forecast, which is slightly above its historical average. With an implied total return more in line with the average of our coverage universe and a more balanced risk-reward profile, we downgrade TMX. ... The industry backdrop remains mixed as Canadian derivatives trading volumes are improving, U.S. derivative trading volumes remain robust and Trayport continues to deliver strong revenue growth and the TMX has done a good job limiting expense growth. ... We view the shares as fairly valued and the risk-reward profile as more balanced. The TMX's shares trade at about 20 times our NTM EPS forecast, which is slightly above its historical average."