TD Cowen Lifts Franklin Resources Target on Improving Fundamentals

TD Cowen raised its price target on Franklin Resources (NYSE:BEN) to $28 from $27 while maintaining a Buy rating, citing improving long-term fundamentals and a favorable setup across both macro and company-specific factors.

Despite being the only sell-side firm currently with a Buy rating on the asset manager, TD Cowen remains bullish, highlighting stabilizing outflows from WAMCO—Franklin's fixed income subsidiary—as a key inflection point. The firm raised its adjusted earnings estimates for fiscal years 2025 and 2026, pointing to earnings upside that consensus is underestimating.

The report underscores multiple drivers behind the optimism: strengthening trends in net flows and fee rates, early signals of momentum from internal indicators, and a macro environment that increasingly supports Franklin’s positioning. TD Cowen also noted that recent thematic research identifies Franklin as a standout among traditional asset managers, poised to benefit from a shift in investor preferences.

While the stock has already rebounded year-to-date, the firm sees additional upside, potentially reaching $30 depending on the pace at which WAMCO-related runoff continues to taper. Overall, TD Cowen sees a compelling risk-reward profile and a market still underappreciating Franklin's turnaround trajectory.