Wall Street Is Overlooking Transformation At Franklin Resources

Summary

• Wall Street is highly pessimistic about Franklin Resources' future.
• Most people know Franklin Resources as a traditional mutual fund business, yet beneath the surface, BEN has been transforming its business, and this has important implications for the future.
• BEN’s business has shifted its strategy over the past few years to focus more on alternative investments.
• Alternative investment fees are more lucrative and more stable than mutual fund fees.
• Franklin Resources has recently made changes to its product development and distribution strategy that will start to move the needle in coming years.

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Franklin Resources (NYSE:BEN) has its share of detractors. Wall Street is highly pessimistic about BEN's future prospects. According to TIKR, the median Target Stock price for 13 analysts covering BEN is $27.00, slightly below the current price. Only 1 analyst has a Buy rating

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.