Franklin Resources Shows Early 'Turnaround' Signs as Western Outflows Ease, Morgan Stanley Says

MT Newswires Live05-06 23:13

Franklin Resources (BEN) is showing signs of an "early-stage turnaround" as improving core fund flows and moderating outflows at Western Asset Management strengthen business momentum, Morgan Stanley said in a report emailed Wednesday.

The investment bank said Franklin has posted nine consecutive quarters of "positive net flows" excluding Western, while quarterly Western-related outflows have declined to about $4 billion from a peak of roughly $68 billion a year earlier.

Franklin's "repositioning toward higher-growth areas," including separately managed accounts, ETFs and alternatives, is helping stabilize the firm's "trajectory," though "fee compression" and shifts toward "lower-fee products" remain structural challenges, according to the report.

Morgan Stanley upgraded Franklin Resources to equal-weight from underweight and raised the price target to $31 from $21, citing improving "flow dynamics" and a more balanced risk-reward profile.

Price: 31.13, Change: +0.67, Percent Change: +2.20

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment