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Jeffeires Tweaks Estimates and Price Targets on Asset Managers Segment

October 12, 2011 4:35 PM EDT
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Price: $833.70 -0.17%

Rating Summary:
    17 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Following a number of market checks and the continued volitility in the market, Jefferies is making a few estimate and price target changes ahead of third quarter earnings.

An analyst at Jefferies comments, "In addition to the AUM hit from the market downturn in the quarter, managers will also have an negative mark-to-market of "below-the-line" line items. This will have a negative impact on BEN, BLK, IVZ, JNS, LM, TROW and WDR. For example, LM currently has approx. $400M in seed capital spread around the likes of Western, Permal, and other affiliates, of which roughly $200M is marked-to-market."

The firm is reaffirming its Hold rating on shares of BlackRock Inc. (NYSE: BLK) while lowering its price target from $177 to $167. Jefferies is also cutting its FY11 and FY12 EPS estimates from $11.56 and $12.68 to $11.19 and $12.54.

Jefferies is maintaining its Hold rating on shares of Franklin Resources (NYSE: BEN) while reducing its price target from $128 to $110. Jefferies is also lowering its FY11 and FY12 EPS estimates from $8.90 and $9.10 to $8.70 and $9.74.

The firm cut its rating on shares of Waddell & Reed Financial (NYSE: WDR) to a Hold rating from its previous rating of Buy, while cutting its price target from $34 to $27.50. Jefferies is also reducing its FY11 and FY12 EPS estimates from $2.12 and $2.34 to $2.05 and $2.20.

Jefferies is lowering its FY11 and FY12 EPS estimates on Affiliated Managers Group (NYSE: AMG) from $6.69 and $7.35 to $6.38 and $7.25.

Jefferies is lowering its FY11 and FY12 EPS estimates on Invesco Ltd. (NYSE: IVZ) from $1.66 and $1.82 to $1.65 and $1.80.

Jefferies is lowering its FY11 and FY12 EPS estimates on Janus Capital Group Inc. (NYSE: JNS) from $0.76 and $0.59 to $0.70 and $0.57.

Jefferies is lowering its FY11 and FY12 EPS estimates on Legg Mason, Inc. (NYSE: LM) from $1.99 and $1.78 to $1.65 and $1.74.

Jefferies is lowering its FY11 and FY12 EPS estimates on T. Rowe Price Group Inc. (Nasdaq: TROW) from $2.91 and $3.20 to $2.88 and $3.20.


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