UPDATE: Keefe, Bruyette & Woods Downgrades GAIN Capital Holdings to Market Perform, Reiterates $8 PT on Less Compelling Risk-Reward

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In a report published Wednesday, Keefe, Bruyette & Woods analyst Niamh Alexander downgraded the rating on
GAIN Capital HoldingsGCAP
from Outperform to Market Perform, but reiterated the $8.00 price target. In the report, Keefe, Bruyette & Woods noted, “We downgrade GAIN Capital to Market Perform from Outperform. After the recent run up in the stock, we don't consider the risk-reward as compelling here. While we were still concerned about expense growth after a disappointing second quarter report in July, we felt the risk-reward and leverage to FX volatility pickup too high to ignore. With now just 6% upside potential to our price target of $8, 10X our 2016 EPS estimate, we move to Market Perform.” GAIN Capital Holdings closed on Tuesday at $7.59.
Posted In: Analyst ColorDowngradesAnalyst RatingsBruyette & WoodsKeefeNiamh Alexander
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