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Founded in 1947 and headquartered in San Mateo, California, Franklin Resources, Inc. (BEN) is a global investment management firm that delivers innovative financial solutions. With a market cap of $10.9 billion, Franklin Resources operates under the Franklin Templeton brand, offering various asset management services, including mutual funds, ETFs, and institutional investment strategies.
Shares of the asset management company have significantly underperformed the broader market over the past 52 weeks. BEN has declined 22.7% over this time, while the broader S&P 500 Index ($SPX) has rallied 21.8%. In 2025, BEN has edged up 2.6%, compared to SPX’s 2.7% gain on a YTD basis.
Looking further, Franklin Resources has also lagged behind the iShares U.S. Financial Services ETF (IYG) with 35.4% returns over the past 52 weeks and a 6.8% YTD gain.
Franklin Resources' recent stock underperformance is primarily due to significant client withdrawals from its subsidiary, Western Asset Management, following an SEC investigation into alleged improper trading by former co-CIO Ken Leech.
However, shares surged over 10% on Jan. 31 after the company reported strong Q1 earnings results. Franklin Resources posted revenue of $2.25 billion, exceeding the consensus estimate of $2.10 billion and reflecting a 1.8% year-over-year increase. EPS came in at $0.59, beating Wall Street’s estimate of $0.53. Adjusted operating income totaled $412.8 million, down from $451.6 million in the previous quarter and $417 million a year ago.
For the current fiscal year, ending in September 2025, analysts expect BEN’s EPS to decline 8.8% year-over-year to $2.18. The company's earnings surprise history is mixed. It topped the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 14 analysts covering the stock, the consensus rating is a “Moderate Sell.” That’s based on eight “Holds,” two “Moderate Sells,” and four “Strong Sells.”
This configuration is slightly less bearish than three months ago when five analysts recommended a “Strong Sell” rating.
On Feb. 3, J.P. Morgan (JPM) analyst Ken Worthington maintained a “Hold” rating on Franklin Resources with a price target of $21, implying a marginal potential upside.
As of writing, BEN is trading above the mean price target of $19.59. The Street-high price target of $22 implies a potential upside of 5.7% from the current price levels.
