BUZZ-ICAP: loses last "buy" rating after Barclays downgrades

Fri Oct 16, 2015 3:36am EDT
 
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** ICAP one of the bottom performers on the STOXX Europe 600 EUR Price Index after Barclays analysts downgrade to "Equal Weight" on lack of earnings momentum (TP cut to 500p from 600p)

** No analyst covering stock now rates it a "buy", according to Thomson Reuters StarMine

** Barclays' analysis of ICAP's electronic volumes shows weakening trends in recent months contributing to lack of earnings momentum

** ICAP recently said foreign exchange spot volumes in September were dull on its EBS platform

** The analysts say that unless volumes significantly improve, ICAP needs to reduce Voice costs and its pay structure needs to change, with multi-year deferrals instead of quarterly cash bonuses

** Barclays analysts say they prefer Deutsche Boerse, which they recently upgraded to "overweight" because of improving volume outlook and better operational leverage

** ICAP down 2.81 pct, one of the bottom performer on the FTSE Mid 250 Index and the FTSE All Share Financials Index (RM: noor.hussain.thomsonreuters.com@reuters.net; RM: alasdair.pal.thomsonreuters.com@reuters.net)