Stock Price & Analysis

Sell BEN stock as analyst sentiment leans towards sell or hold with modest price targets, and technical indicators show a neutral to bearish trend.

The price prediction for BEN stock in 2025 is $21, driven by potential recovery in assets under management and cost-cutting measures. Analysts have set an average price target of $21, with some firms raising their targets following positive Q1 earnings. However, challenges like net outflows and a Moderate Sell consensus may limit upside.

The S1 support level for BEN Stock is $19.28 ,The R1 resistant level for BEN Stock is $20.46.

As of the end of day on 2025-03-11, the price of BEN Stock was $19.64.

The target price for BEN Stock according to analyst rating is 21.07, with the highest price target at 24.00 and the lowest at 18.00. Analysts have a Moderate Sell rating on BEN Stock overall.

The market cap of BEN is $10.3B.

Analysis and Insights

Valuation Metrics:

BEN's current valuation metrics suggest potential overvaluation. The price-to-earnings (P/E) ratio of 23.79 (Q4 2024) and 31.81 (Q1 2025) is elevated compared to industry peers, indicating a premium valuation. The EV/EBITDA ratio of 10.16 (Q4 2024) and 10.61 (Q1 2025) further supports this view, as it reflects a higher valuation relative to earnings.

Price-to-Book (P/B) Ratio:

The P/B ratio of 0.84 (Q4 2024) and 0.85 (Q1 2025) is below 1, suggesting that the stock may be undervalued relative to its book value. However, this metric must be interpreted cautiously, as asset management firms often carry significant intangible assets.

Analyst Sentiment:

Analysts have mixed views on BEN, with a Moderate Sell consensus. The average price target of $21.07 is slightly above the current price of $20.08, indicating limited upside potential. Recent downgrades and lowered price targets from firms like Barclays and Morgan Stanley highlight concerns about EPS growth and expense management.

Technical Analysis:

The stock is trading near its lower Bollinger Band, with an RSI of 47.13, indicating a neutral position. The MACD is slightly negative, suggesting bearish momentum. Support levels are at $19.30 (S1) and $18.94 (S2), while resistance is at $20.48 (R1) and $20.85 (R2).

Dividend Yield:

BEN offers a dividend yield of 6.15%-6.16%, which is attractive for income-focused investors. However, this may not offset concerns about slowing AUM growth and elevated expenses.

Insider Activity:

Positive insider sentiment is evident, with 41 insiders increasing their share purchases, including a significant buy by Major Shareholder Charles B. Johnson. This signals confidence in the company's future performance.

AUM Trends:

Franklin Resources reported stable AUM of $1.58T in February, but this was offset by $10B in long-term net outflows, primarily from Western Asset Management. Equity and fixed-income AUM declined slightly, while multi-asset AUM increased.

Conclusion:

While BEN's dividend yield and insider buying are positive signals, the elevated P/E and EV/EBITDA ratios, combined with analyst downgrades and AUM outflows, suggest the stock may be overvalued. Investors should monitor the company's ability to stabilize AUM growth and control expenses before considering a purchase.

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Franklin Resources, Inc. is a global investment management company with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. It offers specialization on a global scale, bringing capabilities in fixed income, equity, alternatives and multi-asset solutions. The Company provides its investment management and related services to retail, institutional and high-net-worth investors in jurisdictions worldwide. Its investment products include sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. Its funds include registered funds (including exchange-traded funds or ETFs) and unregistered funds. The Company offers its services and products under its various brand names, including Alcentra, K2, Benefit Street Partners, ClearBridge Investments, Martin Currie, O’Shaughnessy, and Lexington Partners. It also focuses on the retirement sector.

The price prediction for BEN stock by 2030 is approximately $28 per share. This estimate is based on the company's strong Q1 earnings, including a revenue of $2.25 billion and EPS of $0.59, which exceeded expectations. However, the current "Moderate Sell" consensus among analysts and challenges like client withdrawals suggest cautious optimism.

BEN has a total of 9200 employees.