Back to top

Bear of the Day

We are downgrading our recommendation on Legg Mason, Inc. (LM) to Underperform from Neutral based on the company's ongoing managerial changes. However, the company'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's funds has remained mixed since the peak of financial crisis and its shares did not rebound as compared with its competitors.

Our 6-month 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 price target implies an expected negative return of 7.7% over that period, which is consistent with our Underperform recommendation on the shares.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%