Deutsche Bank Upgrades Franklin Resources (BEN) to Hold

Deutsche Bank upgraded Franklin Resources (NYSE: BEN) from Sell to Hold with a price target of $41.00 (from $37.00).

Analyst Brian Bedell said, "We regard BEN as having among the most solid brands and reliable operating models in the industry, with highest margins on a net revenue basis. However we see BEN having much slower organic growth (negative flows for at least the near-to-intermediate term,) vs. peers & we think this will restrain any positive catalysts for the stock and also be a negative catalyst for the stock at times. While BEN's global distribution platform & product breadth are strong, we see the business as most exposed to retail broker sold mutual funds (in our coverage) & and most vulnerable to potential advisor & client behavior toward substituting passive products for active products. This said, BEN's relative investment performance in several key products (especially in Global Bond, Income, & Growth) has improved recently and may hasten BEN's return to positive organic growth, possibly in 2018. BEN may also repatriate foreign cash & pay a special dividend to shareholders, though we think this already factored into its valuation."

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 $42.94 yesterday.

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