Evaluating Franklin Resources: Insights From 6 Financial Analysts

In the latest quarter, 6 analysts provided ratings for Franklin Resources BEN, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Franklin Resources, presenting an average target of $28.0, a high estimate of $32.00, and a low estimate of $22.00. Witnessing a positive shift, the current average has risen by 14.75% from the previous average price target of $24.40.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Franklin Resources's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Franklin Resources. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Franklin Resources compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Franklin Resources's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Franklin Resources's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Franklin Resources analyst ratings.

Delving into Franklin Resources's Background

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.

Franklin Resources's Economic Impact: An Analysis

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Franklin Resources displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 2.43%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the 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 14.32%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Franklin Resources's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.38%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Franklin Resources's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.94%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.99.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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