Franklin Resources Target Raised to $22 with 14% Q4 EPS Cut
Morgan Stanley lifted its Franklin Resources price target to $22 from $21 while retaining an Underweight rating and cutting its Q4 adjusted EPS forecast by 14%. The firm raised its 2026 EPS forecast by 6.3% and 2027 estimate by 0.7%, as January assets under management climbed to $1.71 trillion with $3 billion of long-term inflows ex-Western Asset.
1. Analyst Revises Price Target and EPS Forecasts
Morgan Stanley raised its Franklin Resources price target to $22 from $21, maintained an Underweight rating, trimmed the calendar Q4 adjusted EPS estimate by 14% and lifted its 2026 adjusted EPS forecast by 6.3% and 2027 estimate by 0.7% based on expectations for stronger fee income and improved non-operating investment returns.
2. Operating Cost Pressure Drives Q4 EPS Cut
The 14% reduction in the Q4 adjusted EPS estimate reflects anticipated higher operating costs across Franklin Resources’ global investment operations.
3. AUM Rises to $1.71 Trillion with Net Inflows
Preliminary month-end assets under management increased to $1.71 trillion in January from $1.68 trillion in December, driven by about $3 billion of long-term net inflows excluding $1.5 billion of outflows at Western Asset Management, whose AUM stood at $216 billion.