With a market cap of $12.6 billion, Franklin Resources, Inc. (BEN) is a global investment management company based in San Mateo, California. It generates most of its revenue and net income by offering investment management services to retail mutual funds, institutional and private accounts, and other investment products under various brands like Franklin, Templeton, and Legg Mason.
Shares of the asset management company have underperformed the broader market considerably over the past year. BEN has declined 2.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.9%. In 2024 alone, Franklin Resources stock dipped 19.9%, while $SPX rose 11.6% on a YTD basis.
Narrowing the focus, BEN's price performance trails behind the US Financial Services Ishares ETF’s (IYG) whopping 32.7% gain over the past year and 11.8% return on a YTD basis.
Shares of Franklin Resources fell 6.4% after the company reported Q2 adjusted EPS of $0.56, missing the estimates by 1.8%. However, its $2.2 billion revenue, beat the analysts’ expectations by 4.7%.
For the current fiscal year, ending in September, Street expects BEN’s EPS to decline 5% year over year to $2.47. Franklin Resources’ earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on one other occasion.
The consensus rating among the 12 analysts covering BEN stock is a “Moderate Sell.” That’s based on seven “Hold” ratings, two “Moderate Sells,” and three “Strong Sells.”
This configuration has been consistent over the past months.
On April 30, TD Cowen lowered the stock's price target to $25.50 from $29 while maintaining a “Hold” rating. The analyst attributed the decline to several factors, including underperformance and cautious financial guidance.
The mean price target of $26.10 suggests a 9.3% premium to BEN from current levels. The Street-high target of $30 represents an upside potential of 25.7%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
