UPDATE: KBW Lowers PT on Jefferies Group to $28

KBW is out with its report today on Jefferies Group (NYSE: JEF), lowering its PT to $28.

In a note to clients, KBW writes, "Lowering 2Q11 est. to $0.40 from $0.43 on a higher share count from the equity capital raise in early April that increased our estimates for the avg. diluted share count by 14.7 mil. for the qtr. Adjusted revenue assumptions to reflect strong investment banking results, in particular M&A and FICC underwriting, while we tempered equities revenue estimates given lower overall volume trends in the qtr while FICC likely remained strong. Lowering PT."

Shares of JEF closed Tuesday at $21.19, up 0.90% from Monday's close.