Citigroup Reiterates Neutral Rating, $25 PT on Legg Mason

In a report published Friday, Citigroup reiterated its Neutral rating and $25.00 price target on Legg Mason LM. Citigroup noted, “LM increased 3%+ on 1/10, outperforming most peers, due to a technical short squeeze, in our view, following media speculation the Board was approached about a possible PE-led MBO. In turn, we believe LM is the resident hedge to better flow stories following our conversations with investors. We are not inclined to chase the technical updraft, and maintain our Neutral rating while our fundamental target remains $25. We prefer AB (turnaround), BLK (better flows + operating leverage + capital deployment), WETF (passive play), and FII (less onerous money market reform) among the Traditional A/Ms at present – and the Alternatives at large (BX, KKR and APO in particular).” Legg Mason closed on Thursday at $26.84.