J.P. Morgan Ups PT On BEN To $137

After 3FQ11 results beating consensus, J.P Morgan is raising its price target on Franklin Resources BEN from $135 to $137 and maintaining its Neutral rating on the stock. Says J.P. Morgan, in its report, “Franklin Resources reported 3FQ11 diluted EPS of $2.26, beating our estimate and consensus median by $0.08. Franklin posted another strong sales quarter, much better than modeled, with global fixed income funds maintaining their position as Franklin's dominant asset class. Franklin looks well positioned for the current market environment as equity volatility continues to drive investors to fixed income. Although we maintain our Neutral rating on BEN on fears that rising rates could derail its growth story, we increase our 12/11 price target to $137 to reflect strong 2H11 organic growth expectations and improving margins.” BEN closed at $122.33 yesterday.