Barclays Thinks FXCM Is Worth $1.00

Barclays says that FXCM Inc FXCM is worth just $1 per share, compared with the premarket indicated price at $2.40.

The analysts get to the $1 price by calculating a pre-Swiss National Bank crisis sale price for the company and then factoring out the bailout the company received from Leucadia National Corp. LUK.

It is clear from FXCM’s reporting that the SNB crisis weighed not just on the firm’s capital position, but also on customer volumes. During the first half of January, retail foreign exchange volumes averaged $27.1 billion per day. That number plunged to $7.3 billion per day in the last six days of the month. Barclays suggests this “meaningful decline” will persist and weigh down the quarter.

Barclays does mention that active accounts were a positive trend despite recent events. Active accounts increased by 1.7 percent to 193.5k. Barclays is hiking its estimate for Q1 active accounts to 194k, from 180k previously.

With the $1 price target, Barclays maintains FXCM at Underweight.