CHICAGO, Sept. 20, 2012 /PRNewswire/ -- Zacks Equity Research highlights Legg Mason, Inc. (LM) as the Bear of the Day.
Full analysis of Legg Mason, Inc. (LM) is available at http://at.zacks.com/?id=10495.
Here is a synopsis of Legg Mason, Inc. (LM):
Bear of the Day - Legg Mason, Inc. (LM):
We are downgrading our recommendation on Legg Mason, Inc. (LM) to Underperform from Neutral based on the company's ongoing managerial changes. However, Legg Mason's fiscal first-quarter 2013 earnings outpaced the Zacks Consensus Estimate, though a decrease in total revenues and client outflows were the dampeners.
In the near term, assets outflows are expected to remain a significant headwind. The performance of Legg Mason funds has remained mixed since the peak of financial crisis and its shares did not rebound as compared with its competitors.
Our 6-month Legg Mason target price of $24.00 equates to about 17.4x the Zacks Consensus Estimate for fiscal 2013. Combined with the $0.44 per share annual dividend, this Legg Mason price target implies an expected negative return of 7.7% over that period, which is consistent with our Underperform recommendation on the shares.
Get the full analysis of Legg Mason, Inc. (LM) by going to http://at.zacks.com/?id=10495.
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