UPDATE: Sterne Agee Upgrades Legg Mason to Neutral from Underperform

According to a research report this morning, Sterne Agee upgrades its rating on Legg Mason LM to Neutral following substantial valuation discount and material underperformance. Sterne Agee continued, “LM is roughly unchanged since the market bottom in early October, underperforming the S&P by 25% and peers by a little over 30%. While fundamentals remain choppy with continued outflows and poor margins, given the underperformance and absolute and relative valuation we no longer view the risk/reward as considerably improved.” Legg Mason closed Friday at $23.68 with no change to its $28 PT.