Oppenheimer Has Perform On Jefferies Group

Oppenheimer & Co. has a Perform rating on shares of Jefferies Group JEF after it reported earnings. In a note to clients, Oppenheimer writes, "Jefferies reported results that were broadly in line with our expectations albeit on the weaker side. Trading revenue was weaker but investment banking was stronger than we had modeled. Operating expenses ex-unusual items moved up a bit but we are not overly concerned at this point given JEF's build-out mode. We continue to like the Jefferies growth strategy and believe that it is one of the few real mid-cap growth stories in the financial services industry. However, at 12x our FY2012 EPS estimates, we believe the stock is at best fully priced, and at worst expensive relative to peers." Shares of JEF gained 10 cents yesterday to close at $21.35, a gain of 0.47%.