Jefferies (NYSE:JEF) is currently trading 5.3 percent lower today after a number of analysts cut their rating, earning estimates and price target on the company and said that the investment banks recent quarterly earnings where disappointing. The company release its earnings report on Tuesday which posted earnings of 30 cents per share, almost 50 percent higher than a year ago earnings. That result would have been 10 cents a share though excluding earnings from its recently purchased Prudential Barche’s global commodity group. The company blamed market volatility in August which was caused by the U.S.’s economy being downgraded by Standard & Poor. The company reported a $74 million loss on principal transactions.
Analysts at Goldman Sachs and FBR Capital both cut their standing on the company.
Daniel Harris at Goldman Sachs stated that he does not believe the next quarter will be any better for Jefferies and therefore maintained his rating of ‘Sell’ on the investment bank but lowered his estimates for the fourth quarter to 20 cents per share from his previous guidance of 28 cents per share. He went on to cut his target price on the stock to $13 a share from $15 a share.
Steve Stelmach at FBR Capital Markets kept his ‘Market Perform’ rating on Jefferies but dropped his 2012 outlook on the company to $1.50 a share from $1.75 a share. He lowered his price target on Jefferies to $15 a share from $23 a share. Mr. Stelmach cited that the company will continue to struggle with the economic environment going forward.
Jefferies currently trades 5.38 percent lower at $13.20 a share.
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