Story updated at 9:45 a.m. to reflect market activity.
Shares of Legg Mason gained 0.5% to $8.99 in morning trading.
Legg Mason should see an inflection point in asset flows according to Citigroup analysts.
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Separately, TheStreet Ratings team rates LEGG MASON INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LEGG MASON INC (LM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 152.17% and other important driving factors, this stock has surged by 43.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LEGG MASON INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LEGG MASON INC turned its bottom line around by earning $2.33 versus -$2.69 in the prior year. This year, the market expects an improvement in earnings ($2.58 versus $2.33).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 136.1% when compared to the same quarter one year prior, rising from $29.20 million to $68.95 million.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.1%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: LM Ratings Report