JP Morgan Lowers PT On FXCM To $16.50

JP Morgan has published a research report on FXCM (NYSE: FXCM) after the company reported a weaker than expected January quarter, causing JP Morgan to lower its estimates.

In the report, JP Morgan writes "FXCM reported January volumes which were below our expectations. We are lowering estimates on the lackluster performance in what we would expect to have been a seasonally busy month. However, we continue to recommend FXCM with an Overweight rating. We see the retail FX trading business as under-penetrated, with the potential for FXCM to generate 20% account growth driven by increased marketing spending and consolidation. Our 12/11 price target falls to $16.50, 11.5X our 2012 estimate of $1.46, reflecting a lower 2012 projection."

JP Morgan maintains its Overweight rating and has lowered the price target from $17 to $16.50.

FXCM closed yesterday at $12.05.