Franklin Resources Inc

BEN: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$84.00	Mnk	Dkwfybyj

Franklin Resources: Leech's Departure and Ongoing Investigations Will Weigh on Fixed-Income Flows

Greggory Warren

Aug 21, 2024

We've lowered our fair value estimate for narrow-moat Franklin Resources to $24 per share from $26 to account for revised near-term expectations for managed assets, revenue, and profitability since our last update. With the shares trading down more than 10% Aug. 21 on news that the firm put Ken Leech, co-chief investment officer for Western Asset Management (which is Franklin's bond subsidiary), on a leave of absence (tied to a Wells Notice he received from the SEC) and elevated Michael Buchanan from co-CIO to chief investment officer, they are moderately undervalued.

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