J.P. Morgan Reiterates Overweight Rating, $13.50 PT on FXCM

In a report published Wednesday, J.P. Morgan & Co. reiterated its Overweight rating and $13.50 price target on FXCM

. J.P. Morgan noted, “FXCM is largely a FX agency-only model, and we believe that it is a compelling investment idea. We believe that it is a strong idea in the near and long-term. Near term, management. has taken meaningful steps to accelerate earnings in its institutional businesses. It is working on building new white-label partnerships and has been actively acquiring businesses in important markets such as Japan and Europe. Longer term, FXCM has been under-earning due to low interest rates, an issue that could improve with rate increases outside the US. Valuation is especially cheap. With a high negative correlation to equity volume, we see FXCM as an interesting value idea.” FXCM closed on Tuesday at $9.74.