KBW Maintains Outperform on Knight Capital Group

KBW is out with its report today on Knight Capital Group KCG, maintaining Outperform. In its report, KBW writes, "KCG announced a 6% global staff reduction and the closing of its Hong Kong location to cut $40-50M of costs annually. We increase our 2012 EPS est by 19% to $1.64 and our 2011 EPS est by $0.03 to $0.97. We maintain our Outperform rating, with 46% potential upside to our $16 PT, a 1.5X multiple on TBV of $10.40, between KCG's median 1-yr and 3-yr TBV multiples of 1.3X and 1.8X." At the time of posting, shares of KCG were trading at $11.17, up 2.10% from Thursday's close.