TD Cowen has upgraded Franklin Resources (NYSE: BEN) from Hold to Buy, lifting the price target to \$27. This shift highlights renewed optimism in the asset manager’s valuation and the resilience of its high dividend yield, despite recent earnings softness.
📉 The company reported a 6.2% year-over-year revenue drop in Q2 2025, with earnings per share coming in at \$0.47. While topline pressure remains, Franklin’s proactive moves—like its expanded partnership with Empower and Apollo to broaden private asset offerings—have positioned it well for future flows and market share recovery.
💰 What’s grabbing attention is Franklin’s dividend yield, currently at a robust 5.8%. This significantly outpaces the financial sector average and offers income-focused investors a rare opportunity in today’s rate environment. However, caution is warranted as the payout ratio has ballooned over 180%, raising questions about long-term sustainability.
📈 The upgrade reflects confidence that despite headwinds, Franklin’s diversified asset base, strategic alliances, and long-standing brand in global asset management can support a rebound in both sentiment and performance.
For value investors willing to accept near-term volatility in exchange for solid income and long-term positioning, BEN is stepping back into the spotlight.