Michael Brown, an analyst from Wells Fargo, maintained the Hold rating on Franklin Resources (BEN – Research Report). The associated price target was raised to $21.50.
Michael Brown’s rating is based on a combination of factors that reflect both positive and cautious elements in Franklin Resources’ recent performance and future outlook. The company reported solid second-quarter earnings, with a notable increase in private market fundraising and a positive response from the market, as evidenced by a significant stock price rise on the earnings announcement day. However, despite these favorable developments, there are still areas of concern, such as the ongoing outflows in the WAM segment and a slight miss in the second-quarter EPS compared to Wells Fargo’s estimates.
Furthermore, while Franklin Resources has shown strong operating results and maintained stable expense expectations, the conservative outlook on other income and the minor EPS miss contribute to a more cautious stance. The company’s strategy in alternative products and the potential for margin expansion are promising, but these are balanced by the need for continued improvement in certain areas. As a result, Michael Brown has opted for a Hold rating, reflecting a wait-and-see approach as the company navigates these mixed signals.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is neutral on the stock.