Franklin Resources (BEN) PT Raised at TD Cowen; Stock Named 'Best Smidcap Idea'

TD Cowen analyst Bill Katz raised the price target on Franklin Resources (NYSE: BEN) to $28.00 (from $27.00) while maintaining a Buy rating.

The analyst commented: "BEST SMIDCAP IDEAS: We continue to like the top-down/bottoms-up outlook for BEN & remain the lone sell side Buy rating. We see building momentum in the long-term flow inflection - with WAMCOrelated attrition stabilizing well ahead of our baseline model. We raise our F25-26E adj. EPS and lift 12M target $1 to $28. We see path to $30, with sensitivity analysis reinforcing Street baking in punitive flow outlook(s).

1) We continue to like the macro-micro-technical setup and expect BEN to further climb the wall of indifference; 2) WAMCO-related attrition seems to be stabilizing faster than our above-consensus model currently discounts, reinforcing our view that consensus EPS is well too low; 3) underlying flow & fee rate trends are likely among best in class, with favorable lead indicators; 4) based on our recent Ahead Of The Curve thematic work (see 6/4), we see BEN as a likely beneficiary among the Traditionals; and 5) we continue to see compelling upside, even post YTD bounce, with a pathway toward $30 depending on pace of residual WAMCO run-off."

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