Expert Outlook: Franklin Resources Through The Eyes Of 10 Analysts

10 analysts have expressed a variety of opinions on Franklin Resources BEN over the past quarter, offering a diverse set of opinions from bullish to bearish.

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.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $22.6, a high estimate of $26.00, and a low estimate of $20.00. Observing a downward trend, the current average is 7.98% lower than the prior average price target of $24.56.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Franklin Resources. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Franklin Resources. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey 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.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Franklin Resources's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Franklin Resources analyst ratings.

Get to Know Franklin Resources Better

Franklin Resources provides investment services for individual and institutional investors. At the end of July 2024, Franklin had $1.663 trillion in managed assets, composed primarily of equity (36%), fixed-income (34%), multi-asset/balanced (10%) funds, alternatives (16%) and money market funds (4%). Distribution tends to be weighted equally between retail investors (52% of AUM) and institutional accounts (46%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the us-based asset managers we cover, with 30% of its assets under management invested in global/international strategies and just as much sourced from clients domiciled outside the United States.

Unraveling the Financial Story of Franklin Resources

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: Over the 3 months period, Franklin Resources showcased positive performance, achieving a revenue growth rate of 7.82% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Franklin Resources's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 7.84%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Franklin Resources's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.29%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.5%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Franklin Resources's debt-to-equity ratio is below the industry average. With a ratio of 1.06, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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