Citigroup Note On MF Global (MF)

Citigroup released a research note today updating the situation at MF Global (NYSE: MF). After the closing bell yesterday, the company announced that Jon Corzine will take over as Chairman and CEO. Corzine is the former co-Chairman of Golman Sachs (NYSE: GS) and was also a U.S. senator from 2001-2006 and the governor of New Jersey from 2006-2010. The Citi analysts wrote that "we view the appointment of Jon Corzine as a positive given his experience and stature. Jon Corzine brings strong leadership and credibility to a growing company that has suffered a series of missteps."

MF Global (MF) also pre-announced that its Q4 net revenues will be $235-$245 million. These figures came in significantly below consensus which was at $261 million. The analysts wrote that "we view the guidance as disappointing...given the strong sequential ramp up in exchange-traded volumes this quarter (i.e. CME, ICE, Euronext) we would have expected higher net revenues. Given the net revenue projection, our early read is that MF will report adjusted earnings close to break even next quarter."

Citigroup is reiterating their Hold rating on shares of MF Global (MF) and continue to prefer Buy-rated CME (NASDAQ: CME). During today's trading session, MF has gained 10.79% to $8.10.