Written by Jasir Jawaid
J.P. Morgan analyst Kenneth Worthington initiated coverage on Franklin Resources Inc., writing that while the acquisition of Legg Mason diversifies its business away from outflow-heavy legacy products, it will be a struggle to return to positive net sales in the near term.
Outflows remain elevated in the company's Global Bond and Income strategies and its Global Equity franchise.
"We see a more active management team using its large cash position to more aggressively grow and broaden both investment and distribution capabilities via M&A," the analyst wrote.
The price target is $23.00. Worthington's adjusted EPS estimates are $2.66 for 2020 and $2.75 for 2021. He initiated coverage at "neutral."
This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.
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