Jefferies Starts Mizuho Financial Group (MFG) at Hold; Piggy (bank) in the Middle

Jefferies initiates coverage on Mizuho Financial Group (NYSE: MFG) with a Hold. Price target Y100.

Jefferies analyst says, "Mizuho are planning to merge Mizuho Bank and Mizuho Corporate Bank and downsize 3,000 staff. We believe that the costs of executing this will be larger than the company expects. Mizuho still faces bottlenecks in terms of a high expense ratio and low net interest spread. As such, earnings risks are higher in the event of a worsening economy."

"We see Mizuho as fairly valued and do not see any buy catalysts. We believe risks to our thesis are to the downside."

For an analyst ratings summary and ratings history on Mizuho Financial Group click here. For more ratings news on Mizuho Financial Group click here.

Shares of Mizuho Financial Group closed at $2.53 yesterday.

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