NEW YORK (TheStreet) -- FXCM (FXCM) shares are down 15.09% to $1.35 in trading on Friday after the forex trading services provider received a downgraded valuation from one of its largest lenders as well as a price target downgrade from an independant ratings firm as part of the fallout from the release of its weak first quarter revenue results.
Citigroup analyst William Katz said that holding company Leucadia (LUK), which was forced to bailout FXCM for a $300 million loan earlier this year after the Swiss National Bank unexpectedly decided to no longer peg the Swiss franc to the euro and instead allow it to float freely, values its loan at about $947 million, according to a report Katz published earlier this week.
After reviewing Leucadia's financials, Katz determined that the company values FXCM at about 80 cents per share, a 41% downside from the stock's current price.
Separately, analysts at Keefe, Bruyette & Woods cut their price target on the company to $1 from $1.50 per share while maintaining its "underperform" rating. The downgraded outlook was a result of the company's reported $98 million in first quarter revenue missing the firm's $107 million expectations.
TheStreet has further coverage of FXCM's fall here.
TheStreet Ratings team rates FXCM INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FXCM INC (FXCM) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, poor profit margins and generally disappointing historical performance in the stock itself."