Analysts on Wall Street speculate whether the stocks of Franklin Resources will rise or decline.
In the world of finance, the performance of Franklin Resources, Inc. (BEN) has been a topic of interest. Over the past 52 weeks, shares of BEN have gained 14.9%, while the broader S&P 500 Index has surged 18.4%. However, the current financial outlook for BEN indicates a mixed analyst sentiment.
A consensus rating of "Hold" among 12 covering analysts suggests a neutral stance towards the company. Analysts expect BEN's EPS to decline about 13% year-over-year to $2.08 for the fiscal year ending September 2025.
The analyst ratings range from "Strong Buy" to "Strong Sell," with a moderate tilt towards neutrality and bearishness recently. The average 12-month price target is approximately $24.12 to $24.63, representing about a 15-22% potential upside from recent prices. The highest price targets reach $29 to $31, reflecting more optimistic views.
Goldman Sachs recently upgraded BEN from "Neutral" to "Buy" with a $29 price target, while JPMorgan Chase has a "Hold" rating with a $29 price target, implying about 15% upside. One analyst recently suggested a "Strong Buy" rating for BEN.
The consensus rating among analysts remains a "Hold" despite BEN's Q3 performance, which was stronger than expected. However, the dip in shares after the Q3 earnings release, due to lower investment management fees, may have influenced this decision.
BEN, based in San Mateo, California, is a publicly owned asset management holding company with a market cap of $13.2 billion. The company offers a range of mutual funds, including equity, fixed income, balanced, and multi-asset strategies.
It's important to note that all information and data in this article are solely for informational purposes. The author, Neharika Jain, does not have positions in any of the securities mentioned.
On a YTD basis, the stock of BEN is up 23.9%, outpacing SPX's 7.6% return. However, the Financial Select Sector SPDR Fund (XLF) has had a 23.4% uptick over the same period, with BEN lagging behind.
In summary, analysts expect a near-term EPS decline in 2025 but potential recovery in the following years, while the stock maintains a "Hold" consensus with some upside potential based on current price targets around $24-$31. The outlook has a cautiously balanced mix of moderate bullishness and caution, reflecting current market conditions and company performance.
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- Investing in Franklin Resources, Inc. (BEN) requires careful consideration, as analysts hold a consensus rating of "Hold", suggesting a neutral stance towards the company despite its strong Q3 performance.
- Although the business segment of Franklin Resources, Inc. (BEN) offers a diverse range of mutual funds, the current financial outlook indicates an expected decline in EPS by about 13% year-over-year, as cited by the analysts.
