Zacks Investment Research upgraded shares of Franklin Resources Inc. (BEN) from NEUTRAL to OUTPERFORM on May 14, 2012, with a target price of $131.00.
We are upgrading our recommendation on Franklin to Outperform from Neutral based on its strong earnings performance and improving market sentiments. The company's fiscal second-quarter 2012 earnings outshined the Zacks Consensus Estimate. Results improved due to higher top-line growth. Increased assets under management (AUM) in the reported quarter were also encouraging. However, elevated operating expenses were the dampeners. Franklin's global footprint is an exceptionally favorable strategic point as its AUM is well diversified. The company is also poised to benefit from its strong balance sheet. Moreover, the acquisitions completed in 2011 are expected to strengthen its financials. However, the regulatory issues and sluggish economic recovery could mar the AUM growth and increase costs.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Franklin Resources Inc. (BEN),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment