BMO Capital Markets Begins Coverage on Franklin Resources (NYSE:BEN)

Key Points

• BMO Capital Markets has initiated coverage on Franklin Resources (NYSE:BEN) with an "outperform" rating and a price target of $26.00, indicating a potential upside of 13.52% from its previous close.
• Recent analyst ratings show a mix of opinions, with four analysts recommending a Buy, five a Hold, and five a Sell, leading to a consensus rating of "Reduce" and an average price target of $24.25.
• Franklin Resources recently reported earnings of $0.49 EPS, exceeding estimates but showing a 2.2% decline in revenue compared to the same quarter last year.

Equities researchers at BMO Capital Markets began coverage on shares of Franklin Resources (NYSE:BEN - Get Free Report) in a research note issued to investors on Friday,Benzinga reports. The firm set an "outperform" rating and a $26.00 price target on the closed-end fund's stock. BMO Capital Markets' price target suggests a potential upside of 13.52% from the company's previous close.

Other analysts have also recently issued reports about the company. Barclays restated an "underweight" rating and issued a $23.00 price target (up from $20.00) on shares of Franklin Resources in a research note on Monday, August 4th. Morgan Stanley raised their price target on Franklin Resources from $20.00 to $21.00 and gave the company an "underweight" rating in a research note on Tuesday, August 12th. JPMorgan Chase & Co. raised their price target on Franklin Resources from $22.00 to $29.00 and gave the company a "neutral" rating in a research note on Monday, August 4th. Zacks Research cut Franklin Resources from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 20th. Finally, Cowen reiterated a "buy" rating on shares of Franklin Resources in a research report on Monday, June 16th. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $24.25.

Franklin Resources Stock Up 1.6%

Shares of NYSE BEN opened at $22.90 on Friday. The stock has a market cap of $11.89 billion, a P/E ratio of 44.91, a PEG ratio of 1.12 and a beta of 1.50. The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 0.94. Franklin Resources has a 12-month low of $16.25 and a 12-month high of $26.08. The business's fifty day simple moving average is $24.69 and its 200-day simple moving average is $22.42.

Franklin Resources (NYSE:BEN - Get Free Report) last announced its quarterly earnings data on Friday, August 1st. The closed-end fund reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.03. The business had revenue of $2.06 billion for the quarter, compared to analysts' expectations of $2.38 billion. Franklin Resources had a return on equity of 8.76% and a net margin of 3.73%.The company's revenue for the quarter was down 2.2% compared to the same quarter last year. During the same period last year, the firm earned $0.60 earnings per share. As a group, equities analysts predict that Franklin Resources will post 2.16 EPS for the current fiscal year.

Hedge Funds Weigh In On Franklin Resources

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Principal Financial Group Inc. grew its holdings in shares of Franklin Resources by 22.5% during the first quarter. Principal Financial Group Inc. now owns 464,238 shares of the closed-end fund's stock worth $8,937,000 after buying an additional 85,407 shares during the last quarter. Concurrent Investment Advisors LLC purchased a new stake in Franklin Resources in the 1st quarter valued at approximately $203,000. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Franklin Resources by 5.9% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 81,576 shares of the closed-end fund's stock valued at $1,573,000 after purchasing an additional 4,530 shares in the last quarter. Teacher Retirement System of Texas purchased a new stake in Franklin Resources in the 1st quarter valued at approximately $811,000. Finally, Robeco Institutional Asset Management B.V. boosted its holdings in Franklin Resources by 4.3% in the 1st quarter. Robeco Institutional Asset Management B.V. now owns 476,253 shares of the closed-end fund's stock valued at $9,168,000 after purchasing an additional 19,673 shares in the last quarter. Hedge funds and other institutional investors own 47.56% of the company's stock.

Franklin Resources Company Profile

Franklin Resources, Inc is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries.

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