UPDATE: BGB Securities Initiates GAIN Capital Holdings at Hold; Valuation Fair

Loading...
Loading...
BGB Securities initiated coverage on GAIN Capital Holdings
GCAP
with a Hold rating. BGB Securities noted, "Even while the firm's institutional business has gained significant traction, related revenue has proven merely a surrogate for declining retail revenue owing to to sidelined retail investors and increased competition from closest competitor FXCM. And we don't expect FXCM to stop turning the screws any time soon: For some time managements of FXCM and GCAP have eschewed the merits of a combination but FXCM has been intent on lowering the “ask.” As such, although GCAP's shares price of ~$4.00 includes $1.50 of excess cash, with the aforementioned challenges likely continuing to pressure EPS, we view the shares fairly priced and initiate coverage with a HOLD rating." GAIN Capital Holdings closed at $3.95 on Friday.
Posted In: InitiationIntraday UpdateAnalyst RatingsBGB Securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...