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Wall Street JournalPeeling Back The Layers: Exploring Franklin Resources Through Analyst Insights
Franklin Resources (NYSE:BEN) has been analyzed by 13 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 5 | 7 | 1 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 0 | 0 | 1 | 2 | 1 |
| 2M Ago | 0 | 0 | 1 | 3 | 0 |
| 3M Ago | 0 | 0 | 3 | 1 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $21.25, a high estimate of $26.00, and a low estimate of $19.00. Observing a downward trend, the current average is 6.8% lower than the prior average price target of $22.80.
Interpreting Analyst Ratings: A Closer Look
The perception of Franklin Resources by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michael Cyprys | Morgan Stanley | Lowers | Underweight | $19.00 | $21.00 |
| Benjamin Budish | Barclays | Lowers | Underweight | $19.00 | $20.00 |
| Michael Brown | Wells Fargo | Lowers | Equal-Weight | $19.00 | $20.00 |
| David Motemaden | Evercore ISI Group | Lowers | Underperform | $19.00 | $20.00 |
| Alexander Blostein | Goldman Sachs | Lowers | Sell | $21.25 | $23.75 |
| Michael Brown | Wells Fargo | Announces | Equal-Weight | $20.00 | - |
| David Motemaden | Evercore ISI Group | Lowers | Underperform | $20.00 | $24.00 |
| Benjamin Budish | Barclays | Announces | Underweight | $20.00 | - |
| Aidan Hall | Keefe, Bruyette & Woods | Maintains | Underperform | $23.00 | $23.00 |
| Brian Bedell | Deutsche Bank | Lowers | Hold | $23.00 | $24.00 |
| Bill Katz | TD Cowen | Raises | Hold | $24.00 | $23.00 |
| Aidan Hall | Keefe, Bruyette & Woods | Lowers | Underperform | $23.00 | $25.00 |
| Etienne Ricard | BMO Capital | Lowers | Market Perform | $26.00 | $27.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Franklin Resources. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Franklin Resources compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Franklin Resources's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
To gain a panoramic view of Franklin Resources's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Franklin Resources analyst ratings.
Unveiling the Story Behind Franklin Resources
Franklin Resources provides investment services for individual and institutional investors. At the end of August 2024, Franklin had $1.681 trillion in managed assets, composed primarily of equity (36%), fixed-income (34%), multi-asset/balanced (10%) funds, alternatives (15%) and money market funds (5%). Distribution tends to be weighted equally between retail investors (52% of AUM) and institutional accounts (46%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the US-based asset managers we cover, with 30% of its assets under management invested in global/international strategies and just as much sourced from clients domiciled outside the United States.
Franklin Resources: Delving into Financials
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Franklin Resources showcased positive performance, achieving a revenue growth rate of 7.82% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 7.84%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Franklin Resources's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.29%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Franklin Resources's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.5%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Franklin Resources's debt-to-equity ratio is below the industry average. With a ratio of 1.06, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
How Are Analyst Ratings Determined?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
Which Stocks Are Analysts Recommending Now?
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This article was generated by Benzinga's automated content engine and reviewed by an editor.