Jefferies Cuts Price Target on J.G. Wentworth (JGW) to $1.25 Following 4Q

Jefferies maintained a Hold rating on J.G. Wentworth (NYSE: JGW), and cut the price target to $1.25 (from $2.00), following the company's 4Q earnings report. JGW reported ANI per share of ($0.37) versus the consensus of $0.20. Management noted it will be implementing cost reductions of $25 - $30M primarily in the structured settlement business which Jefferies believes may offset some of the decline in growth experienced in this segment.

Analyst John Hecht commented, "JGW reported ANI (adjusted net income) of ($0.37), versus our estimate of $0.01 and consensus of $0.20 as TRB volumes/margins remain under pressure. The company remains focused on diversification strategies. We reduce our estimates based on lower margins/volumes and reduce our price target based on the lower ANI and limited visibility. We maintain our Hold rating based on weak core trends and we await indications that the diversification strategy is paying off."

For an analyst ratings summary and ratings history on JGWPT Holdings click here. For more ratings news on JGWPT Holdings click here.

Shares of JGWPT Holdings closed at $1.10 yesterday.

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