Goldman Sachs Has Sell On Jefferies Group Inc. (JEF)

Goldman Sachs has a Sell rating and a $24 price target on shares of Jefferies Group Inc. JEF. In a note to investors, Goldman writes, "Jefferies continues to garner a premium multiple owing to potential for growth relative to peers across products and geographies. The upside in EPS in 1Q highlights some level of market share gains in trading, though the growth in headcount slowed for the first time over two years, which may imply revenues will begin to track more closely with industry volume. That said, it generally takes 4-8 quarters for new hires to fully ramp onto a new platform, thus there could be some non-correlated growth remaining. Surprisingly, JEF noted their business was relatively consistent across all months of the quarter, a contrast to what peers noted about December on 4Q earnings, and that early March activity remained solid to start F2Q11." Shares of JEF lost 6 cents yesterday to close at $24.48, a loss of 0.24%.