J.P. Morgan Adding FXCM To Focus List

J.P. Morgan Chase & Co. is out with a research report on FXCM (NYSE: FXCM) and is adding the name to its US Focus List. It has an Overweight rating and a $15 price target on shares.

In a note to clients, J.P. Morgan Chase & Co. writes, "We are adding FXCM to the J.P.Morgan America's Focus List. Our Dec 11 price target is $15. We anticipate that FXCM's successful 2Q11 results will remove some investor apprehension about FXCM's business model and earnings growth trajectory. In particular, we see strong account and asset growth, a recovery in account profitability, an increase in corporate operating margins, and a lower tax rate, all improving investor perception. Importantly, management indicated that there was no negative impact (yet) from lower allowable leverage in Japan. With an earnings beat this quarter and what we suspect will be rising estimates in 3Q and 4Q, we think the lower stock price makes an attractive entry point."

Shares of FXCM gained 33 cents yesterday to close at $9.23.