Goldman Raises Price Target on GFI Group (GFIG), Strong Cash Flow and Long-Term Potential
GFIG Hot Sheet
Rating Summary:3 Buy, 0 Hold, 1 Sell
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Today's Overall Ratings:
Up: 20 | Down: 11 | New: 38
Goldman Sachs is reiterating its Buy rating on shares of GFI Group (NASDAQ: GFIG) and is raising its price target slightly from $5.00 to $5.50 following a number of investor meeting with management.
The firm believes that GFIG's third quarter results will be relatively strong given market trends and its macro business. The firm believes that shares are very attractive for the long-term given its management team, growing non-brokerage businesses, and its ability to leverage technology platforms to succeed as a SEF in a post Dodd-Frank environment.
Goldman notes that while earnings may take some time to turnaround fully, solid cash flow gains should help drive the stocks price.
As a result of its new model, the firm is increasing its 2011-2013 EPS estimates from $0.29, $0.36, and $0.42 to $0.33, $0.40, and $0.47.
An analyst at Goldman comments, "While the firm has work to do to corral costs in its core brokerage platform, there is upside in a scenario with mid single-digit revenue growth and flat costs."
For more ratings news on GFI Group click here and for the rating history of GFI Group click here.
Shares of GFI Group closed at $4.62 yesterday, with a 52 week range of $3.68-$5.75.
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The firm believes that GFIG's third quarter results will be relatively strong given market trends and its macro business. The firm believes that shares are very attractive for the long-term given its management team, growing non-brokerage businesses, and its ability to leverage technology platforms to succeed as a SEF in a post Dodd-Frank environment.
Goldman notes that while earnings may take some time to turnaround fully, solid cash flow gains should help drive the stocks price.
As a result of its new model, the firm is increasing its 2011-2013 EPS estimates from $0.29, $0.36, and $0.42 to $0.33, $0.40, and $0.47.
An analyst at Goldman comments, "While the firm has work to do to corral costs in its core brokerage platform, there is upside in a scenario with mid single-digit revenue growth and flat costs."
For more ratings news on GFI Group click here and for the rating history of GFI Group click here.
Shares of GFI Group closed at $4.62 yesterday, with a 52 week range of $3.68-$5.75.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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