In a report released today, Michael Cyprys from Morgan Stanley maintained a Sell rating on Franklin Resources (BEN – Research Report), with a price target of $18.00.
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Michael Cyprys has given his Sell rating due to a combination of factors impacting Franklin Resources. The primary reason for this rating is the reduction in adjusted earnings per share (EPS) estimates for the first quarter of 2025, which have been lowered by 4% due to increased general and administrative, as well as information services and technology expenses. Despite the projection of a 3% increase in EPS for 2026, the EPS for 2025 is expected to decline by 2% to $2.12, indicating limited near-term growth potential.
Additionally, the price target remains unchanged at $18, reflecting a valuation of 5.3 times the expected EBITDA for 2026, which suggests that the current market price of $20.65 may not be sustainable. This cautious outlook is further supported by a recommendation to remain underweight (UW) on the stock, implying that the risks and expenses outweigh potential gains, leading to the Sell rating by Cyprys.
In another report released today, KBW also maintained a Sell rating on the stock with a $21.00 price target.