This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Stocks With Upgrades: LM, SU, DO, KCG, HUN, VCI, MRH

NEW YORK ( TheStreet) -- The following stocks were upgraded to buy at TheStreet Ratings on Tuesday: Legg Mason (LM - Get Report), Suncor Energy (SU - Get Report), Diamond Offshore Drilling (DO - Get Report), Knight Capital Group (KCG - Get Report), Huntsman (HUN - Get Report), Valassis Communications (VCI) and Montpelier RE Holdings (MRH - Get Report).

Legg Mason

The asset management firm reported earlier this month that it had $631 billion in assets under management as of the end of January. Legg Mason had $672 billion in assets under management the prior year and $627 million in assets under management in December.

"Consistent with prior comments, management expects that better performance at Western coupled with a solid performance in global bonds, dividend oriented equities, and muni funds, among other things, should all support improved flow trends over the coming quarters, although management made no predictions with regard to when flows will turn positive," Keefe, Bruyette & Woods analysts wrote in a Feb. 15 report. "One road block to improving the optics of flow trends remains the large (about $25bn of AUM) very low fee (2-3bps pre-revenue share) sovereign wealth fund mandate that continues to be in outflow to the tune of $3bn-plus per quarter. Nevertheless, management came across feeling more confident that they had a broader array of attractive products to offer investors than at any time over the past several years."

Shares of Legg Mason were upgraded to buy from hold by TheStreet Ratings.

"The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations," TheStreet Ratings wrote. "We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Legg Mason has an estimated price-to-earnings ratio for next year of 13.89; the average for asset management companies is 13.94. For comparison, BlackRock (BLK) and State Street (STT) both have lower forward P/Es of 13.26 and 8.98, respectively.

Of the 19 analysts who cover the company, 10 gave it a hold rating. Six analysts rated Legg Mason a buy and three gave it a sell rating.

TheStreet Ratings gives Legg Mason a B grade and $31.46 price target. The stock closed Friday at $27.32 and has risen 13.6% year to date.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
VCI $0.00 0.00%
DO $25.25 1.70%
HUN $21.20 -0.54%
KCG $12.32 0.08%
LM $50.47 0.28%

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs