KBW Downgrading Legg Mason Inc (LM)

KBW is downgrading shares of Legg Mason Inc LM to Market Perform with a $39 price target on shares. In a note to investors, KBW writes, "While we thought it was an in-line quarter with solid revenue and moderating outflows, expected sharp increase in compensation was disappointing and margin improvement now less compelling. Lower estimates and price target. Lower rating to Market Perform." Shares of LM are down 19 cents to $34.94 in early Wednesday trading.