Credit Suisse Cuts Price Target on FXCM Inc (FXCM), Maintains Outperform Rating on Current Valuation

Credit Suisse is maintaining its Outperform rating on shares of FXCM Inc (NYSE: FXCM), but is cutting its price target from $15 to $13.50 following slightly weaker than expected Q1 results.

The company released its Q1 results with EPS of $0.18 when the firm and Street was anticipating $0.19 and $0.20. The firm notes that while this quarter's results came in a penny light of its expectations, the 15%+ drop in the shares today is unwarranted.

The firm reports, "Second quarter-to-date, core fundamentals are off to an improved start with average daily retail customer volumes increasing from March and continued account growth. Post yesterday's results, we reduce our forward estimates and target price as we factor in higher than expected expenses and slower payoff from advertising spend."

Credit Suisse is lowering its FY11 and FY12 EPS estimates from $1.00 and $1.40 to $0.80 and $1.15.

With strong organic growth prospects, a targeted marketing program in its early innings, and solid capital position coupled with a 2% dividend, the firm believes shares of FXCM provide an attractive entry point at current valuations.

For more ratings news on FXCM Inc click here and for the rating history of FXCM Inc click here.

Shares of FXCM Inc closed at $9.97 yesterday.

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