GFI Group Estimates Changed At KBW

KBW analyst maintains its rating on GFI Group (NASDAQ: GFIG) at Market Perform. GFI Group reported fourth quarter earnings, and missed the KBW/consensus estimates due to their credit product revenue. Employee contracts partially offset this as they were renegotiated at lower prices.

KBW put a target price of $5.50 on GFI Group as they changed their estimates from the news in the conference call. The analyst stated that the revenue outlook improves for GFI Group and this is a positive that had to be added into their model.

When it comes to the industry that GFIG is involved in, the OTC market, KBW feels that the industry has a lot of positives. KBW believes the OTC market, particularly the CDS is set to continue to grow at rates above average. This is due to the volatility that continues to increase in the markets, as well as the need to hedge investment risks.