LM Missed EPS Forecast Due To Higher Compensation Expense

Analysts at Keefe Bruyette maintain their "outperform" rating on Legg Mason Inc LM, while reducing their estimates for the company. The target price for LM has been reduced to $37. According to Keefe Bruyette, “While revenues were slightly above forecast operating earnings below mainly due to higher compensation expense.” “AUM were previously reported and net outflows were in line with forecast but overall remained elevated,” the analysts add. Keefe Bruyette has lowered its EPS estimates for 2011 and 2012 from $1.49 to $1.45 and from $2.00 to $1.95, respectively. More Analyst Ratings here