Jefferies Group Still A Sell, According To Goldman Sachs

Jefferies Group, Inc. JEF is having 3Q2010 estimates lowered to $0.29 (from $0.33) by Goldman Sachs and FY2010/2011/2012 EPS estimates to $1.39/1.55/1.75 (from $1.45/1.60/1.80) due to weak trading volumes in equities and fixed income, soft capital market trends (particularly in equity underwriting, which is down 62% q/q). Goldman Sachs reports that although Jefferies emerged from 1H2010 with $159M in income, the funds have slowly dissolved from buybacks ($28M) and FX and tax impacts. Goldman leaves its $22 price target unchanged and reiterates its Sell rating. Jefferies Group, Inc. closed yesterday at $23.57.