Sterne Agee Downgrading Legg Mason

Sterne Agee is out with a research report on Legg Mason Inc. LM and is downgrading shares to Underperform with a $32 price target. In a note to cliens, Sterne Agee writes, "We continue to believe LM will struggle to post meaningful growth in AUM or revenues absent a sizable equity market rally. And in that environment we expect shares of more equity-exposed peers would outperform. While fixed-income net flows have improved, we believe the company is still a long way from generating material net inflows which we believe are necessary for meaningful relative multiple expansion." Shares of LM gained $1.43 yesterday to close at $27.15.