BMO Capital lowered its price target on Jefferies Financial Group to $50 from $57 while keeping a Market Perform rating, even after the investment bank beat estimates with third-quarter adjusted earnings per share of $1.08. That topped BMO's own $1.05 estimate and the $1.00 consensus. BMO said equities trading added 12 cents a share relative to consensus and other investment banking added 3 cents, while fixed income, currencies and commodities cost 6 cents and equity capital markets 2 cents. Asset management revenue came in light on lower investment returns, a 4-cent drag, while lower non-compensation expenses added 7 cents and higher preferred dividends and a larger share count, both linked to SMBC, roughly canceled each other out. The cut comes as Jefferies reshapes parts of its trading business, winding down its outsourced fixed-income trading desk following the departure of the unit's head, Joram Siegel.
Jefferies Financial Group IncBMO cut its Jefferies price target to $50 from $57 while keeping a Market Perform rating, even after the Q3 EPS beat.
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