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Jefferies Downgrades Legg Mason to “Hold”; Low Valuation, but No Catalysts for Turnaround (LM)

By Dividend.com,  September 17, 2012, 08:12:53 AM EDT

Asset manager Legg Mason, Inc. ( LM ) on Monday received a big downgrade from analysts at Jefferies & co.

The firm cut its rating from "Buy" to "Hold" with a $30 price target, suggesting an 11% upside to the stock's Friday closing price of $26.95.

A Jefferies analyst commented, "Although a new CEO and potentially more input from activist investors could be a positive, we believe this will take some time to play out and potential options are limited. Despite the attractive valuation, we foresee few short-term catalysts."

Legg Mason shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of Leg Mason ( LM ) have a 1.63% dividend yield, based on Friday's closing stock price of $26.95. The stock has technical support in the $23-$24 price area. If the shares can firm up, we see overhead resistance around the $29-$30 price levels.

Legg Mason, Inc. ( LM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: LM



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