Update shared on04 Aug 2025
Fair value Increased 5.11%Franklin Resources’ analyst price target has been raised to $24.70, reflecting optimism over its accelerating expansion into alternatives, which is expected to drive growth and support an improving organic fee outlook.
Analyst Commentary
- Significant progress in expanding into private markets, with nearly 25% of management fees now from alternatives, positioning Franklin among leaders in alternative exposures.
- Increased exposure to alternatives expected to drive growth as demand for alternative products rises, particularly through the wealth channel.
- Broad global retail distribution offers leverage to scale alternative product offerings and capture attractive fee rates.
- Organic base fee growth outlook improving, expected to approach break-even after years of decline.
- Bullish analysts see 25% upside potential to current share price based on these catalysts.
What's in the News
- Franklin Resources completed the repurchase of 7.3 million shares (1.39%) for $157.4 million in Q2 2025, totaling 195.3 million shares (35.73%) and $6.66 billion under its ongoing buyback program.
- The company enhanced its Canvas custom indexing platform by adding managed options strategies, enabling advisors to use single-account options programs for risk management, income, and diversification.
- The Board approved new bylaws establishing Delaware's Court of Chancery as the sole forum for certain legal actions involving the company or its representatives.
- Franklin Resources and Western Asset Management face a class action lawsuit alleging misleading statements and favoritism between investment strategies within certain mutual funds, resulting in investor damages.
- Franklin Resources was added to the Russell 2500, Russell 2500 Value Index, and Russell 2500 Value Benchmark.
Valuation Changes
Summary of Valuation Changes for Franklin Resources
- The Consensus Analyst Price Target has risen from $23.50 to $24.70.
- The Consensus Revenue Growth forecasts for Franklin Resources has significantly risen from 0.4% per annum to 1.2% per annum.
- The Net Profit Margin for Franklin Resources has fallen slightly from 17.02% to 16.19%.
Disclaimer
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