Deutsche Bank Downgrades Franklin Resources (BEN) to Sell

November 10, 2016 6:48 AM EST
Get Alerts BEN Hot Sheet
Price: $40.61 +1.88%

Rating Summary:
    3 Buy, 17 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Deutsche Bank downgraded Franklin Resources (NYSE: BEN) from Hold to Sell with a price target of $35.

Analyst Brian Bedell said, "We are downgrading Franklin Resources Inc. to Sell from Hold & increasing our price target to $35 from $30, after the stock rallied 12% to $38.49 post the US election results on view of greater likelihood of favorable repatriation combined with market view that DOL fiduciary rule could be repealed. Even if assuming BEN could pay a special dividend next year of ~$12 p/sh if 90% of $8.5bn foreign cash is repatriated at a favorable 10% tax rate, we find fair value of the stock at $35 p/sh, if placing a relative P/E of ~55% on our core 2017 earnings outlook (bottom of our large-cap asset manager peer group given sustained negative organic growth rate exceeding 10% annualized), driving a $23-$24 fair core value before adding $12 p/share potential value of special dividend."

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 $38.49 yesterday.

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