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Cautious Outlook on Franklin Resources Amid EPS Adjustments and Operating Expense Challenges

Cautious Outlook on Franklin Resources Amid EPS Adjustments and Operating Expense Challenges

Michael Cyprys, an analyst from Morgan Stanley, maintained the Sell rating on Franklin Resources. The associated price target was raised to $21.00.

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Michael Cyprys has given his Sell rating due to a combination of factors impacting Franklin Resources. The decision is influenced by a reduction in the company’s adjusted earnings per share (EPS) for the third quarter of 2025, which has been lowered by 6% to $0.51 from a previous estimate of $0.54. This adjustment is primarily attributed to increased operating expenses, although there is a partial offset from improved revenues.
Additionally, the full-year 2025 adjusted EPS forecast has been revised downward by 3% due to similar dynamics, while the 2026 EPS is expected to rise by 5% due to better management fees. Despite a slight increase in the price target to $21, reflecting a 6x multiple of the 2026 EBITDA, the recommendation remains underweight, indicating a cautious outlook on the stock’s performance.

In another report released on August 4, Evercore ISI also maintained a Sell rating on the stock with a $25.00 price target.

BEN’s price has also changed moderately for the past six months – from $20.190 to $25.290, which is a 25.26% increase.

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