Goldman Sachs Reiterates Buy Rating On Knight Capital

According to Goldman Sachs, Knight Capital Group

reported May metrics this morning. Goldman Sachs said that dollar volume traded remains robust and is outpacing broad market trading volume, while a qoq decline in VIX and lower OTC trading volume could dampen Knight's revenue capture; our 2Q revenue capture estimate of 105 bp is down 18 bp from the 1Q level of 123 bp. “We leave our 2012/2013 estimates intact at $1.45/$1.70, but tweak our 2Q11/2011 estimates to $0.25/$1.15 from $0.28/$1.20. Our P/E-derived price target remains intact, and we see 22% upside over the next 12-months. We reiterate our Buy rating.” Knight Capital Group closed yesterday at $11.44.