There has been very strong interest in analyzing FXCM Inc (NYSE:FXCM), as a multitude of companies have issued updated or new ratings on the U.S. listed broker. In pre-market trading on Monday, FXCM Inc (NYSE:FXCM) was downgraded to underperform by analysts at Credit Suisse.
According to the note distributed by the Swiss bank, the company’s earnings beat was driven primarily by rising institutional business and lower advertising & marketing expenses.
Last Thursday, FXCM Inc (NYSE:FXCM) highlighted the firm’s intention to sell its institutional business and low margin, high capital requirements retail units in Japan and Hong Kong. The firm’s CEO Drew Niv stated that with the proceeds, the company was aiming to to repay its Leucadia loan it took out in the aftermath of the Swiss National Bank disaster by the end of 2015.
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While the prospects sound good, analysts do not seem convinced of FXCM’s ability to sell the company’s assets at a high enough price to cover the loan.While FXCM Inc (NYSE:FXCM) averted the sale of its non-core assets in a fire sale mode, some analysts say it may be faced with a new similar conundrum only over a longer time.
The company’s CEO Drew Niv said during the earnings call, that as press releases about successful sales of the company’s non-core assets start to flow in, he sees the confidence in the company’s ability to remain on the market gradually improving.
On Monday, Keefe, Bruyette & Woods (KBW) downgraded the stock to market perform, while Credit Suisse reaffirmed its underperform rating.