Barclays Adjusts PT and Estimates on Franklin Resources (BEN); Investment Thesis Unchanged on Strong Asset Manager

May 3, 2012 3:41 PM EDT
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Price: $40.40 --0%

Rating Summary:
    3 Buy, 17 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 11 | New: 7
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Barclays maintains a 'Overweight' on Franklin Resources (NYSE: BEN) price target lowered from $143 to $139.

Analyst, Roger A. Freeman, said, "Despite posting a 2Q FY12 EPS that beat consensus estimates, the shares traded down 3.3% yesterday (vs only a 0.2% decline in the S&P 500). Results were both noisy and the upside was driven by investment gains (mainly seed portfolio), while core fundamental metrics, such as operating margin, came in lower-than-expected and down sequentially (that figure was also impacted by accounting noise in the quarter)."

Freeman's investment thesis is unchanged, saying that flow strength and diversification with positive net returns continue to make Franklin Resources a high-quality/diversified manger. However, Freeman lowers FY2 EPS estimate from $9.13 to $8.97 and FY13 from $10.37 to $10.14.

For an analyst ratings summary and ratings history on Franklin Resources click here. For more ratings news on Franklin Resources click here.

Shares of Franklin Resources closed at $121.74 yesterday.

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