Jefferies downgraded to Market Perform from Outperform at Keefe Bruyette

Keefe Bruyette analyst Michael Brown downgraded Jefferies Financial Group to Market Perform from Outperform with a price target of $37, down from $38. Jefferies faced a tough operating environment in Q4 due to weaker than expected equity capital markets and advisory revenues as well as a higher comp ratio, Brown tells investors in a research note. The analyst reduced forward estimates to reflect a declining advisory pipeline and says that within the capital markets space, there are better ways to play the potential equity capital markets rebound than Jefferies.