Already a Bloomberg.com user?
Sign in with the same account.
CIBC World upgraded Knight Trading (NITE
) to buy from hold.
Analyst Ken Worthington says he downgraded the company in May on the belief that the negative impact of decimalization was not reflected in analysts' estimates nor the company's stock price. He now thinks the company has been oversold, and that investment in Knight makes a compelling risk/reward trade-off at the current price level.
Worthington thinks the company can post $1.00 2002 EPS, and exceed the current $0.76 consensus estimate without a rebound in the stock market. He sees this being done by cutting expenditures in Europe, reducing "Payment For Order Flow," and reducing fees paid to SEC. He sees $0.57 2001 EPS and set a $15 target.