Expert Outlook: Franklin Resources Through The Eyes Of 11 Analysts

11 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 following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $19.41, with a high estimate of $29.00 and a low estimate of $15.00. Highlighting a 3.19% decrease, the current average has fallen from the previous average price target of $20.05.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Franklin Resources. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer 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: Analysts gauge the dynamics of price targets, providing estimates for the future value of Franklin Resources's stock. This comparison reveals trends 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 February 2025, Franklin had $1.577 trillion in managed assets, composed primarily of equity (39%), fixed-income (30%), multi-asset/balanced (11%) funds, alternatives (16%) and money market funds (4%). Distribution tends to be weighted not quite equally between retail investors (54% of AUM) and institutional accounts (43%), 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.

Franklin Resources: A Financial Overview

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Decline in Revenue: Over the 3M period, Franklin Resources faced challenges, resulting in a decline of approximately -1.92% in revenue growth as of 31 March, 2025. This signifies a reduction 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: Franklin Resources's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 6.49%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Franklin Resources's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.11%, the company may encounter challenges in delivering satisfactory 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 0.43%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 1.07, Franklin Resources adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.

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