UPDATE: Deutsche Bank Cuts PT to $5 on Gain Capital on Q1 Miss
Deutsche Bank lowers its price target from $6 to $5 on Hold-rated Gain Capital (NYSE: GCAP) following flat EPS that missed analyst estimates.
Deutsche Bank comments, "GCAP reported Op. EPS of $0.00, missing expectations. GCAP reported op. EPS of $0.00 (GAAP loss of $0.04), missing our/St est of $0.06/$0.08, due to a lower rev/mil. Overall, top line trends were weaker than expected, but improved ~5% q/q driven by higher retail volumes & higher inst'l revs, offset by a lower than expected rev/million. Overall, a challenging qtr, & while Gain has long term growth opportunities (via industry growth, share gains, & consolidation), given some reg risks, volatility in the model & weak industry trends so far in 2Q, we expect est/val to remain subdued in the near term, & maintain our Hold rating on a lower target price of $5."
GCAP closed at $5 on Wednesday.
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