Through The Fly's Eyes: MF Global

From Kevin Shult of Theflyonthewall.com

MF Global Getting Noticed

At least seven research firms initiated coverage of MF Global Ltd. (MF) this morning, with the majority of the ratings favorable, based on expectations for the company to benefit from the havoc in the financial markets.

MF Global, which had a disappointing trading debut last month at $30, is a broker of exchange-listed futures and options for over 130,000 clients. Shares now trade at $26.55 in late-day trading today.

JP Morgan, who initiated MF Global with an Overweight rating, expects volume and volatility in the current market will to create earnings growth in the longer-term. However, some analysts are concerned with MF Global’s competition. Deutsche Bank initiated shares of MF with a Hold rating, citing concerns over falling commission rates in a falling interest rate environment, which could pressure the company’s growth. Analysts from Wachovia initiated coverage of the derivatives brokerage firm with a Market Perform rating, while Citigroup started coverage with a Hold rating.