Nomura Securities Maintains a 'Neutral' on Legg Mason (LM); F2Q12 review
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Price: $49.99 --0%
Rating Summary:
1 Buy, 14 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 14 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Legg Mason (NYSE: LM) price target of $31.00.
Nomura analyst, Glenn Schorr, said, "The reported $0.39 EPS included roughly $0.13 U.K. tax benefit offset by corporate investment losses of $19.7M (~$0.13/share). The company made some P&L progress but experienced tough flows in a tough market environment. LM managed positive operating leverage q/q through continued streamlining benefits. LM bought back $200M in stock during the quarter, with $155M left for next fiscal year. Unfortunately, outflows remain an issue. Management guided 4Q12 EPS to be in the range of $0.42- $0.52, with $35M of expense saves kicking. We think the stock is reasonably priced and cash flow is good, as LM had a negative tax rate in the quarter (big enough NOL to generate $1.7B cash tax benefit); however, we see better value elsewhere in the group.
For more ratings news on Legg Mason click here and for the rating history of Legg Mason click here.
Shares of Legg Mason closed at $29.00 yesterday.
Nomura analyst, Glenn Schorr, said, "The reported $0.39 EPS included roughly $0.13 U.K. tax benefit offset by corporate investment losses of $19.7M (~$0.13/share). The company made some P&L progress but experienced tough flows in a tough market environment. LM managed positive operating leverage q/q through continued streamlining benefits. LM bought back $200M in stock during the quarter, with $155M left for next fiscal year. Unfortunately, outflows remain an issue. Management guided 4Q12 EPS to be in the range of $0.42- $0.52, with $35M of expense saves kicking. We think the stock is reasonably priced and cash flow is good, as LM had a negative tax rate in the quarter (big enough NOL to generate $1.7B cash tax benefit); however, we see better value elsewhere in the group.
For more ratings news on Legg Mason click here and for the rating history of Legg Mason click here.
Shares of Legg Mason closed at $29.00 yesterday.
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