UPDATE 1-Friedman revises price targets for 6 US asset managers

martes 10 de junio de 2008 17:37 CEST

 (Adds details, share movement)
 June 10 (Reuters) - Friedman Billings Ramsey revised its
price targets and earnings estimates for six U.S. asset
managers, including Franklin Resources (BEN.N: Cotización) and T. Rowe
Price (TROW.O: Cotización), taking a cautious view on the group based on
continued pressure on the consumer and a weakening macro
 "A weakening macro outlook, which may be beginning to take
hold as higher energy costs and rising inflation concerns are
fueling investor uncertainty in the market -- concerns we
believe will lead to reduced client inflows into retail mutual
funds," the brokerage wrote in a note to clients.
 However, the group's earnings may be lifted by market
appreciation reported so far during the quarter in most of the
major equity indices, it added.
 The Standard & Poor's 500 Index .SPX has gained 3
percent, while the Nasdaq Composite Index .IXIC has gained
7.9 percent quarter-to-date, the brokerage noted.
 Friedman raised its price targets for Franklin Resources,
Janus Capital (JNS.N: Cotización), T. Rowe Price and Waddell & Reed
(WDR.N: Cotización), but cut its targets for Legg Mason and Federated
Investors (FII.N: Cotización).
 The brokerage said it continued to favor Waddell, which is
rated "outperform," due to its resiliency in performance and
sales traction.
 The following table lists the estimates and price target
changes made by the brokerage on the companies:
 Company Name                Price target  June-qtr EPS view
2008 EPS view
                          New   Old     New     Old      
New     Old
 Federated Investors (FII.N: Cotización) $36   $37     $0.60  $0.60     
$2.40  $2.45
 Franklin Resources (BEN.N: Cotización)  $96   $95     $1.68  $1.67     
$7.13  $7.09
 Janus Capital (JNS.N: Cotización)       $28   $26     $0.31  $0.31     
$1.25  $1.22
 Legg Mason (LM.N: Cotización)           $58   $62     $1.00  $1.06       
--    --
 T. Rowe Price (TROW.O: Cotización)      $52   $50     $0.60  $0.59     
$2.50  $2.46
 Waddell & Reed (WDR.N: Cotización)      $37   $34     $0.41  $0.41     
$1.75  $1.75
 Franklin Resources shares were up almost 2 percent at
$101.32 in morning trade on the New York Stock Exchange, while
Legg Mason shares rose about 1 percent to $52.31. Federated
shares were trading almost flat at $36.76, Janus shares at
$28.95 and Waddell shares at $35.79.
 T. Rowe Price shares were at $57.90 on Nasdaq.
 (Reporting by Ramya Dilip in Bangalore; Editing by Himani
Sarkar)   ((ramya.dilip@thomsonreuters.com; within U.S. +1 646
223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging