Market Overview

Jefferies Says Legg Mason Is Moving From 'Defense To Offense,' Upgrades To Buy

Share:

In a report published Wednesday, Jefferies analyst Daniel Fannon upgraded shares of Legg Mason Inc (NYSE: LM) to Buy from Hold with a price target raised to $67 from a previous $50 given the company's "strong" growth outlook and diversified portfolio.

Fannon wrote that Legg Mason has recorded $11 billion of inflows over the last four months due to the disruption at Pimco as well as the "ongoing momentum" across several affiliates including Western, Clearbridge and Brandywine. The analyst added that while the initial wave of market share gains at the expense of Pimco will subside in the near term, the company holds plenty of potential for new business wins in the institutional channel.

Fannon also argued that the company marked several one-time expenses throughout the past eight quarters, which created "noise" around its income statement. The analyst argued that these expenses have now created a "clean look" and operational improvements should begin to emerge and the company's improved product mix should drive ongoing operational leverage.

Bottom line, Fannon argued that Legg Mason will begin demonstrating organic growth trends that coupled with a consistent buyback program and a modestly improving profile positions the company positively versus its peers.

Latest Ratings for LM

DateFirmActionFromTo
Sep 2019DowngradesOutperformMarket Perform
Aug 2019MaintainsNeutral
May 2019UpgradesUnderperformIn-Line

View More Analyst Ratings for LM
View the Latest Analyst Ratings

Posted-In: Asset Managers Brandywine Clearbridge Daniel FannonAnalyst Color Upgrades Price Target Analyst Ratings

 

Related Articles (LM)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
HSKACanaccord GenuityMaintains75.0
AVGOMorgan StanleyMaintains265.0
AMATNeedhamMaintains56.0
VOYACitigroupMaintains62.0
VCCitigroupMaintains86.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

GBP/USD Higher

TD Ameritrade's Chief Strategist Previews SolarCity's Q4 Results