UPDATE: Jefferies & Company Reiterates Hold Rating, Lowers PT on Legg Mason

In a report published Friday, Jefferies & Company reiterated its Hold rating on Legg Mason LM, but lowered its price target from $30.00 to $27.00. Jefferies noted, “Legg Mason will report earnings on the week of 10/22 prior to market open and its September AUM on Oct 12th. We are anticipating F2Q13 GAAP EPS of $0.57 and total fund outflows of $7.5B. Included in our estimates is a $4m severance charge for Mr. Fetting's departure as well as the previously disclosed $18M tax credit. With regards to flows for the quarter, we are forecasting $10.5B in long term outflows (ex. money market) split between $5.5 out of equity and $5B from fixed income. Finally, we are estimating September AUM of $643.7B.” Legg Mason closed on Thursday at $24.57.