Nomura Securities Adjusts Estimates on Franklin Resources (BEN); Pretty Good and Balanced Quarter
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Price: $33.86 --0%
Rating Summary:
5 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 16 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Franklin Resources (NYSE: BEN) price target raised to $118.00.
Analyst, Glenn Schorr, said, "BEN reported F3Q12 EPS of $2.12 vs. Our/Street $2.07/$2.06, a pretty good and balanced quarter, as most items were a bit better despite tough markets. We think the positives of expense control (revs -1%, expenses -4% q/q), higher margins, reasonable flows, solid LT performance and a 92% payout ratio over the last 4 quarters (with a strong $6.1B cash) all outweigh the issues. LT net inflows of $4.7B (2.7% organic growth) stacks up well against peers’ in tough markets though almost all from fixed income (despite equity investing promotion). Overall LT fund long-term performance are still solid (57%, 69%, and 77% beat Lipper averages on 1-, 3-, and 5-year bases, respectively). That said, we remain neutral on the stock as we think consensus estimates will be relatively unchanged and soft short-term fund performances may keep BEN’s multiple in line with the group."
"Tweaking our 2012/13e on higher AUM, lower revs and expenses: 3Q12E EPS from $2.07 to $2.12; 4Q12E EPS from $2.14 to $2.12; F12E EPS from $8.74 to $8.75; 3Q13E EPS from $2.45 to $2.46; 4Q13E EPS from $2.47 to $2.46; F13E EPS at $9.56."
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 $115.39 yesterday.
Analyst, Glenn Schorr, said, "BEN reported F3Q12 EPS of $2.12 vs. Our/Street $2.07/$2.06, a pretty good and balanced quarter, as most items were a bit better despite tough markets. We think the positives of expense control (revs -1%, expenses -4% q/q), higher margins, reasonable flows, solid LT performance and a 92% payout ratio over the last 4 quarters (with a strong $6.1B cash) all outweigh the issues. LT net inflows of $4.7B (2.7% organic growth) stacks up well against peers’ in tough markets though almost all from fixed income (despite equity investing promotion). Overall LT fund long-term performance are still solid (57%, 69%, and 77% beat Lipper averages on 1-, 3-, and 5-year bases, respectively). That said, we remain neutral on the stock as we think consensus estimates will be relatively unchanged and soft short-term fund performances may keep BEN’s multiple in line with the group."
"Tweaking our 2012/13e on higher AUM, lower revs and expenses: 3Q12E EPS from $2.07 to $2.12; 4Q12E EPS from $2.14 to $2.12; F12E EPS from $8.74 to $8.75; 3Q13E EPS from $2.45 to $2.46; 4Q13E EPS from $2.47 to $2.46; F13E EPS at $9.56."
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 $115.39 yesterday.
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