CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our 12-month target price by $8 to $24, valuing BEN shares at 9.1x our FY 2025 (Sep.) EPS estimate of $2.65 (cut today by $0.20) and at 10x our FY 2024 EPS estimate of $2.40 (cut by $0.25), vs. the shares’ three-year average forward multiple of 9.4x and a peer average of 14.1x. BEN posted Sep-Q EPS of $0.84 vs. $0.63, topping our $0.72 EPS estimate and the $0.59 consensus view. FY 2023 EPS of $2.60 (vs. $3.63) also topped our $2.43 EPS estimate and the $2.35 consensus EPS view. FY 2023 operating revenues fell 5%, in line with our forecast, though margins contracted more than we expected to 14% from 21.4% (adjusted 29.9% vs. 35.9%). AUM of $1.37 trillion rose by 6%, and long-term net outflows of $21.3 billion were a modest improvement over the $27.8 billion of outflows a year ago. Weighing BEN’s discounted to peers valuation, its current yield of 5.4%, and the potential for additional industry-wide consolidation and activism against some mediocre fundamentals, we view the shares as fairly valued.