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Legg Mason Upgraded to “Buy” at Deutsche Bank; Sees 20% Upside (LM)

Investment manager Legg Mason, Inc. ( LM ) on Wednesday caught a big upgrade from analysts at Deutsche Bank.

The firm said it boosted its rating on LM from "Hold" to "Buy" based on valuation.

A Deutsche analyst commented, "We are upgrading LM given the recent pull back in the shares (~15%), multiple defensive earning levers, an attractive valuation, and areas of improving core trends. While the stock has pulled back post the weak quarter and the challenging markets/industry trends, our 2012 estimate remains unchanged (versus a downward move for the sector) given the earnings levers ahead, we find it attractive, and see ~20% upside in the shares."

Legg Mason shares were mostly flat in premarket trading Wednesday.

The Bottom Line

Shares of Legg Mason ( LM ) have a 1.00% dividend yield, based on last night's closing stock price of $31.94. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.

Legg Mason, Inc. ( LM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 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 Nasdaq, Inc.

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

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