Jefferies Group Inc. rose the most in the Standard and Poor’s Midcap Financials Index after Richard Bove at Rochdale Securities LLC said the firm’s role in rescuing Knight Capital Group Inc. is a reason to buy the stock.
Jefferies climbed 4.7 percent to $14.41 at 10:49 a.m. in New York as the broader index advanced 0.7 percent. Bove changed his recommendation to buy from neutral, the analyst said in a note to clients today.
Jefferies led a group of investors to rescue Knight after faulty software resulted in a $440 million trading loss on Aug. 1. Firms including Blackstone Group LP and TD Ameritrade Holding Corp. own a controlling stake in the Jersey City, New Jersey-based market maker. Jefferies also helped lead the U.S. initial public offering for British soccer club Manchester United Plc.
“The deal was a prestigious one for the firm,” Bove said of the IPO. “Jefferies is doing a bit better than thought at present.”
With investors valuing financial firms at or below book value, the New York-based investment bank is “positioned to benefit from the expected environment,” Bove said.