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June 10 (Reuters) - Friedman Billings Ramsey revised its price targets and earnings estimates for six U.S. asset managers, including Franklin Resources (BEN.N) and T. Rowe Price (TROW.O), taking a cautious view on the group based on continued pressure on the consumer and a weakening macro outlook.
“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, T. Rowe Price and Waddell & Reed (WDR.N), but cut its targets for Legg Mason and Federated Investors (FII.N).
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) $36 $37 $0.60 $0.60 $2.40 $2.45 Franklin Resources (BEN.N) $96 $95 $1.68 $1.67 $7.13 $7.09 Janus Capital JNS.N $28 $26 $0.31 $0.31 $1.25 $1.22 Legg Mason (LM.N) $58 $62 $1.00 $1.06 — — T. Rowe Price (TROW.O) $52 $50 $0.60 $0.59 $2.50 $2.46 Waddell & Reed (WDR.N) $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) ((firstname.lastname@example.org; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging email@example.com))