The analyst said KBW continues "to believe that JEF represents a high-quality franchise and it has been unjustifiably punished in recent days." Smith did lower her 12-month price target for Jefferies' shares to $17 from $22, as "the continued overhang of increased regulatory oversight and the speculation for the potential negative impact on EPS could limit a recovery in the stock price." The analyst's $17 target represents a price-to-tangible-book ratio of 1.22, which is "a 34% discount to the firm's 3-yr. average ". Smith also said that Jefferies' capital ratios are "now comparable" to Goldman Sachs ( GS) and Morgan Stanley ( MS), as those companies "have driven ratios lower functioning as bank holding companies for some time now." Jefferies Group's handling of last week's events, the company's strong capital position and growing importance as a dealer in the U.S. and Europe, and Handler's deft maneuvering over the last week, argue that the company is a survivor. The company's low trading multiples make the shares attractive for investors who can commit for several years. -- Written by Philip van Doorn in Jupiter, Fla. To contact the writer, click here: Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.