Market Overview

Keefe, Bruyette & Woods Likes Gain Capital's Survival Amid Extreme Move In The Swiss Franc


Gain Capital Holdings Inc (NYSE: GCAP) hosted its inaugural analyst dinner, which was dominated by the big topic of losses at competitor FX brokers after the extreme CHF/EUR move last Thursday.

According to analysts at Keefe, Bruyette and Woods, management had already announced earlier that it didn't expect any material impact from the currency move. They learned at the dinner that it had previously taken steps to raise margin requirements and liquidation requirements, as well as pull back market making positions.

Analysts said, "We think it will benefit GCAP's multiple in the long term that its business model withstood such an extreme movement in the currency without out-sized costs to its market making business. However, we also believe that issues at competitor brokers and heightened investor concerns about potential volatility in earnings of these businesses could limit valuation upside for a bit."

Shares of Gain Capital were trading slightly higher in pre-market trade at $8.70.

Latest Ratings for GCAP

Feb 2020JP MorganDowngradesOverweightNeutral
Sep 2019B. RileyInitiates Coverage OnBuy
Aug 2019JP MorganUpgradesNeutralOverweight

View More Analyst Ratings for GCAP
View the Latest Analyst Ratings


Related Articles (GCAP)

View Comments and Join the Discussion!

Posted-In: Keefe Bruyette & WoodsAnalyst Color Analyst Ratings

Latest Ratings

ADSKWells FargoMaintains250.0
AATWells FargoMaintains33.0
ZUOCanaccord GenuityMaintains19.0
ZUOMorgan StanleyMaintains11.0
SMARCanaccord GenuityMaintains55.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at