Sterne Agee Lowers EPS Estimates on Legg Mason

A report from Sterne Agee reiterates its Underperform rating and $32 price target, and lowers its FY '12 and '13 estimates to $1.61 and $2.04 on Legg Mason LM. The report states, “We are reducing our fiscal '12 estimate by $0.03 to $1.61. Our fiscal '13 estimate is reduced by $0.26 to $2.04 to reflect a reduced margin expectation and continued asset attrition through fiscal 2Q13. Our calendar 2012 estimate is $1.98, down from $2.24. 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." LM closed yesterday at $29.00.