Timing Is Everything - Legg Mason Inc

Citi have tweaked their earning estimates on Legg Mason, Inc. LM to reflect the net impact of refined synergy time line plus the September market impact. In a research report Citi writes "We lower our F11 (March) estimate $0.15 to $1.75 to reflect more exact accounting of upcoming expense efficiencies. However, we raise F12 and F13 as: a) ultimate synergies have not changed; and b) to reflect above trend NAV gains in September. Revised F12/F13 are $2.55/$3.37 versus $2.53/$3.25 prior. Our revised 2010-12 calendar operating EPS are now $1.65/$2.42/$3.16 (excludes restructuring but inclusive of synergies) while our newest C10-12 cash EPS (operating + DTA and other non-cash items) are $2.86, $3.74 and $4.50 vs. $2.97, $3.74 and $4.38 prior. Our revised C2012 EPS is not enough to alter our $44 target; maintain non-consensus Buy opinion. LM Closed at $30.31 Tuesday