CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by $2 to $30, valuing BEN shares at 10.5x our FY26 (Sep.) EPS estimate of $2.87, 11.3x our FY25 EPS estimate of $2.65, and 12x our FY24 EPS estimate of $2.50. This compares to BEN’s 3-year average forward multiple of 9.7x and the broader asset management and private equity peer group average of 16.6x. After a 5% revenue decline in FY23, we look for revenues to be flat to up 5% in FY24 and FY25. However, BEN has been acquisitive in recent years and could alter its top line growth trajectory with a deal. We do not, however, foresee much organic revenue growth, as BEN remains beset with asset outflows, like the $17B in FY 23 and $28.6B in FY22. Weighing BEN’s subpar fund flow trends with the shares’ discounted valuation to peers and its current dividend yield of 4.5%, we view the shares as fairly valued.