franklin resources stock rating reiterated at TD Cowen following AUM report

Published 05/06/2025, 15:06
franklin resources stock rating reiterated at TD Cowen following AUM report

On Thursday, TD Cowen analysts reaffirmed their Buy rating on Franklin Resources (NYSE:BEN) stock, maintaining a price target of $27.00. The decision follows the release of the company’s assets under management (AUM) data, which was disclosed after the market closed on Monday. With a market capitalization of $11.5 billion and revenue growth of 7.38% over the last twelve months, Franklin Resources has shown robust performance. Analysts at TD Cowen expressed optimism about the company’s performance, noting the AUM and long-term flows exceeded expectations, with the latter benefiting from stronger core flows and a reduction in WAMCO-related run-off.

Franklin Resources, listed on the New York Stock Exchange under the ticker NYSE: BEN, also announced a minor merger and acquisition deal in Europe. The specifics of this transaction have not been detailed, but it is seen as a strategic move by the company. Notable for its strong dividend history, Franklin Resources has maintained dividend payments for 45 consecutive years, currently offering a 6% yield.According to InvestingPro, the company shows several promising indicators, with 7 additional ProTips available to subscribers, including detailed analysis of its financial health and growth prospects.

The analyst’s report highlighted the bullish outlook on Franklin Resources, emphasizing the firm’s unique Buy recommendation among sell-side analysts. The positive AUM figures and the strategic European acquisition are seen as factors that could drive the stock’s performance.

TD Cowen’s reaffirmation of the Buy rating suggests confidence in Franklin Resources’ ability to rise and outperform its peers in the market. The firm’s analysts expect the stock to benefit from the recent developments and maintain its upward trajectory.

This latest update follows Franklin Resources’ efforts to enhance its market position through strategic initiatives and effective management of its assets and flows. The company’s performance and strategic moves continue to be closely monitored by investors and analysts alike.

In other recent news, Franklin Resources, operating as Franklin Templeton, reported its first-quarter 2025 earnings, revealing a mixed financial performance. The company posted an earnings per share (EPS) of $0.47, falling short of the $0.50 forecast, but exceeded revenue expectations with $2.11 billion against a projected $1.6 billion. Franklin Templeton also announced the upcoming liquidation of its Franklin FTSE Hong Kong ETF, with trading to be halted on July 2, 2025, and shares delisted thereafter. In a move to expand its municipal bond ETF offerings, the company plans to convert 10 Putnam municipal bond mutual funds into exchange-traded funds between late 2025 and early 2026.

Additionally, Franklin Resources maintained its quarterly cash dividend at $0.32 per share, consistent with the previous quarter and reflecting a 3.2% increase from the same quarter last year. In leadership news, Franklin Templeton appointed Surajit Ray as the Head of Portfolio Construction and Quantitative Risk for its Franklin Equity Group. Analyst firms have not reported any recent upgrades or downgrades for the company, but Franklin Templeton’s strategic moves indicate a focus on innovation and expansion in ETF offerings. These developments underscore Franklin Templeton’s ongoing efforts to adapt to market demands and enhance its investment management capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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