Navigating 4 Analyst Ratings For Franklin Resources

In the latest quarter, 4 analysts provided ratings for Franklin Resources BEN, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $26.19, a high estimate of $27.00, and a low estimate of $25.00. Experiencing a 4.1% decline, the current average is now lower than the previous average price target of $27.31.

Investigating Analyst Ratings: An Elaborate Study

A comprehensive examination of how financial experts perceive Franklin Resources is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Franklin Resources. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Franklin Resources compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Franklin Resources's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Franklin Resources's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Franklin Resources analyst ratings.

All You Need to Know About Franklin Resources

Franklin Resources provides investment services for individual and institutional investors. At the end of October 2023, Franklin had $1.335 trillion in managed assets, composed primarily of equity (31%), fixed-income (35%), multi-asset/balanced (11%) funds, alternatives (19%) and money market funds (4%). Distribution tends to be weighted equally between retail investors (50% of AUM) and institutional accounts (48%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the U.S.-based asset managers we cover, with more than a third of its assets under management invested in global/international strategies and 29% of managed assets sourced from clients domiciled outside the United States.

Understanding the Numbers: Franklin Resources's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Franklin Resources's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 1.22%. This signifies 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 12.13%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Franklin Resources's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.02%, the company may encounter challenges in delivering satisfactory 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 0.81%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Franklin Resources's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.98.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.