Jefferies (JEF) Shares Continue Lower; Analyst Warns of Overhangs, Cuts Estimates

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Shares of Jefferies (NYSE: JEF) are continuing lower Wednesday following a 1 percent decline on Tuesday. While an intraday downgrade from Rochdale's Dick Bove weighed on shares during the previous session, cautious comments from Susquehanna's Doug Sipkin are giving investors some pause this morning.

Sipkin reduced his FY12 EPS estimate for Jefferies from $1.20 previously to $1.13. The analyst cited increased non-compensation expenses and worse-than-expected equity trading sales. Sipkin said the company's recent management changes/layoffs and downsized prime brokerage operations can likely be attributed to the lower revenue.

The Susquehanna analyst said Jefferies is "built for better markets."

Sipkin maintains a Neutral rating and $14 price target on shares of Jefferies.

The stock last traded down 1.3 percent to $12.91.

Track all the market-moving analyst action on shares of Jefferies with our Analyst Ratings page.

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Analyst Comments, Analyst EPS Change

Related Entities

Jefferies & Co, Richard Bove, Susquehanna International Group of Companies

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