Wells Fargo Starts Knight Capital Group (KCG) at Market Perform; Near-Term Headwinds And Long-Term Opportunities

Wells Fargo initiates coverage on Knight Capital Group (NYSE: KCG) with a Market Perform. PT range is $12-$15.

Wells analyst says, "We like KCG's positioning as one of the leading US equity market makers and believe new market opportunities could meaningfully grow EPS. However, our cautious stance on near-term US equity trading fundamentals drives our neutral stance on the stock."

"We have established 2011E/2012E/2013E EPS of $1.25/$1.34/$1.60, respectively. Our valuation range is based on our sum of the parts analysis and implies a 9-11x multiple on our 2012 EPS estimate."

For an analyst ratings summary and ratings history on Knight Capital Group click here. For more ratings news on Knight Capital Group click here.

Shares of Knight Capital Group closed at $12.12 yesterday.

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