Update shared on 10 Dec 2025
Analysts have modestly reduced their price target on Franklin Resources, trimming it by $1 to $25 per share. They point to limited near term upside despite recent earnings being aided by performance fees and improved broader market conditions.
Analyst Commentary
Analysts are divided on Franklin Resources, with modest adjustments to price targets reflecting a mixed outlook on growth and valuation. Recent market gains and performance fees have provided a short term boost, but questions remain around the durability of earnings momentum.
Bullish Takeaways
- Bullish analysts highlight that stronger equity and bond market returns in recent quarters have supported higher earnings estimates for traditional asset managers, including Franklin Resources.
- Improved market conditions are viewed as a potential tailwind for assets under management. This could underpin gradual revenue growth and justify upside from depressed valuation levels.
- Broad sector wide price target increases suggest that Franklin Resources could benefit from a more constructive backdrop for active managers if risk appetite remains healthy.
Bearish Takeaways
- Bearish analysts note that the latest earnings beat was heavily supported by performance fees, raising concerns about the sustainability and quality of earnings relative to the current price target.
- Limited near term upside is cited as a key constraint. Execution risks around organic growth and net flows are tempering enthusiasm despite the recent market rally.
- Some analysts argue that, even after modest target cuts, the shares fairly reflect current fundamentals. This is seen as leaving less room for multiple expansion unless Franklin Resources delivers more consistent growth.
- The persistence of Underperform and Neutral ratings indicates ongoing skepticism that management can fully capitalize on a better market environment to drive long term earnings acceleration.
What's in the News
- CAIA Association and Franklin Templeton entered a multi-year global strategic partnership to advance alternative investment education, develop an Islamic finance microcredential, and co author research on the Gulf's role in private capital, reinforcing Franklin's long standing Middle East presence and $5 billion in Shariah compliant AUM as of October 2025 (Key Developments).
- Franklin Templeton launched the Franklin Solana ETF (SOEZ) on NYSE Arca, offering staking enabled Solana exposure within its growing U.S. digital asset ETP lineup, alongside existing Bitcoin, Ethereum, XRP, and crypto index products (Key Developments).
- Franklin Resources introduced the Franklin XRP ETF (XRPZ) on NYSE Arca, expanding its institutional grade digital asset offering with a vehicle that tracks the CME CF XRP Dollar Reference Rate and leverages third party custodial and trustee infrastructure (Key Developments).
- The Canton Network onboarded Franklin Templeton's Benji Technology Platform, broadening global institutional access to tokenized investment products and strengthening Canton's role in regulated, blockchain based collateral and liquidity management (Key Developments).
- From July 1 to September 30, 2025, Franklin Resources repurchased about 2.64 million shares for $67.09 million, bringing total buybacks since 2013 to roughly 198 million shares, or 36.23 percent of shares outstanding, at a cost of $6.73 billion (Key Developments).
Valuation Changes
- Fair Value: Unchanged at approximately $24.73 per share, indicating no revision to the underlying intrinsic value estimate.
- Discount Rate: Increased slightly from about 8.80 percent to 8.83 percent, implying a marginally higher required return for valuing future cash flows.
- Revenue Growth: Effectively unchanged at around 0.57 percent, suggesting no material update to long term top line growth expectations.
- Net Profit Margin: Remains stable at roughly 16.38 percent, indicating consistent assumptions for long term profitability.
- Future P/E: Increased slightly from about 11.05x to 11.06x, reflecting a negligible change in the implied valuation multiple on forward earnings.
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