UPDATE: Susquehanna International Group Reiterates Negative Rating, Raises PT on Legg Mason Following 3Q13 Earnings Preview

In a report published Wednesday, Susquehanna International Group analyst Doug Sipkin reiterated a Negative rating on

, and raised the price target from $23.00 to $24.00. In the report, Susquehanna International Group noted, “We are raising our f2Q14 estimate to $0.6 Negative. 0 from $0.48 reflective of a lower tax rate and some revenue benefits from the market lift in September. We are modeling a 15% GAAP tax rate in f2Q as a result of new U.K. corporate tax reductions that were put into place. Our calendar 2013 and 2014 estimates are now $1.70 and $2.00 compared to $1.61 and $1.90, previously. The calendar 2014 revision is reflective of higher buybacks and some flow-through with higher equity asset levels to end the current quarter. Our target is now $24 or 12x our new calendar 2014 estimate. We expect net long-term outflows of $5 billion-$6 billion this quarter or a 4% organic decay rate, the worst since December 2012. Frankly, we do not think estimates or flow matter all that much to shares. The ability to repurchase stock remains the most important driver of the equity. While we continue to believe the strategy employed is aggressive and short-term focused, we do believe it will persist. A sustained weak market still makes LM incredibly vulnerable. The ability to sustain buybacks and realize net operating losses would be questioned more in a sustained weak market. Reiterate Negative.” Legg Mason closed on Tuesday at $32.60.