Analyst Scoreboard: 14 Ratings For Franklin Resources

Analysts' ratings for Franklin Resources BEN over the last quarter vary from bullish to bearish, as provided by 14 analysts.

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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $21.23, along with a high estimate of $26.00 and a low estimate of $19.00. Experiencing a 7.29% decline, the current average is now lower than the previous average price target of $22.90.

Decoding Analyst Ratings: A Detailed Look

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: 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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Franklin Resources compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Franklin Resources's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Franklin Resources's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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 August 2024, Franklin had $1.681 trillion in managed assets, composed primarily of equity (36%), fixed-income (34%), multi-asset/balanced (10%) funds, alternatives (15%) and money market funds (5%). 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.

Understanding the Numbers: Franklin Resources's Finances

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Franklin Resources's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.82% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Franklin Resources's net margin lags behind industry averages, suggesting 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 falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.29%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Franklin Resources's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.5%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.06.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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