JP Morgan Lowers Estimates For ITG

Investment Technology Group

reported average daily trading volume for August at a disappointing 155M shares, all due to market volumes, with ITG gaining market share during the month, JP Morgan reports. JP Morgan is lowering estimates for 3Q while remaining Neutral on ITG. New estimates are for 3Q32010 EPS to $0.17 (from $0.28) and December 2010 price target has been lowered to $15.50 ($16.50). International revenues are expected to be lower (~10%) particularly reporting weaker business in Europe, according to JP Morgan, which speculates that September volumes would need to increase by 280M to get back to 2Q levels, which is believed to be highly unlikely. August market share gains increased 2.66%, up from 2.56% in July, and from the low point of 2.30% in April. JP Morgan believes that although ITG is no longer losing market share, market volume deterioration hurts revenue outlook regardless. Investment Technology Group closed yesterday at $14.25.