UPDATE: Citigroup Downgrades FXCM to Buy on Earnings Outlook and Market Risk

Citigroup reduced its ration on FXCM FXCM from Buy to Neutral and lowered its price target from $14.50 to $10. Citigroup noted, "From Buy to Neutral to reflect: 1) lower earnings outlook – reflecting both reduced legacy business prospects + lower Lucid deal accretion; and, 2) lower target multiple, the latter owing to adverse mix shift. Our prior thesis of acquisition-led growth seems misguided as EPS power is not shining through despite several deals, and the deal backdrop seems somewhat pushed out while deeper movement into market making business leaves us incrementally cautious." FXCM closed at $10.16 on Thursday.