Franklin Resources (BEN) Soars 0.40% to 52-Week High on Analyst Upgrades

Franklin Resources (BEN) shares rose to their highest level since April 2024 today, with an intraday gain of 0.40%.

The strategy of purchasing BEN shares upon reaching a recent high and holding for one week yielded moderate returns over the past five years, with an average annualized return of 5.77%. While the strategy captured some of the stock's volatility, it also resulted in some drawdowns. The maximum drawdown was -20.13% in 2023, reflecting the challenges of holding a high-risk asset during market downturns. Overall, this strategy suited an investor seeking both growth potential and stability, as it provided returns that were above the S&P 500's 5-year CAGR of 4.61% but came with higher volatility.

Franklin Resources has recently experienced significant analyst activity, which has influenced its stock performance. TD Cowen upgraded the company from a "hold" rating to a "buy" rating, setting a target price of $27.00. This positive outlook likely contributed to the stock reaching a new 52-week high.

Morgan Stanley also revised its target price for Franklin Resources, increasing it from $14 to $19. However, the firm maintained an "underweight" rating, suggesting a cautious stance despite the higher target price.

In contrast, Evercore ISI maintained a "sell" rating on Franklin Resources with a target price of $24.00 as of July 3. This indicates a less optimistic perspective from Evercore ISI compared to other analysts.

These varying analyst ratings and target price adjustments reflect the diverse opinions within the financial community regarding Franklin Resources' future prospects. Investors are advised to consider these differing viewpoints when making investment decisions.