UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Lowers PT on GFI Group

In a report published Monday, BMO Capital Markets reiterated its Market Perform rating on GFI Group

, but slightly lowered its price target from $4.00 to $3.00. BMO Capital noted, “The company's core business performance (pre-tax operating income) actually fell slightly short of our expectations during the period. The top line was weaker than we anticipated, owing primarily to a market disruption in commodities related to ICE's transition from swaps to futures. Meanwhile Trayport growth, while still impressive, has slowed given the prolonged sluggish trading environment. The company's cost reduction efforts are having an impact, though the comp ratio continues to tick up given a deteriorating revenue base. Overall the efforts underway should allow GFI to maintain a ~70% comp ratio in 2013 and benefit from greater leverage when the operating environment improves. However, the top line outlook for GFI as well as its closest peers in the near term is fairly bleak.” GFI Group closed on Friday at $3.06.