-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
BEN reported Mar.-Q adjusted EPS of $0.71 vs. $0.47 a year ago, beating the consensus estimate of $0.55 and our forecast of $0.56. Operating revenues rose 9% Y/Y, exceeding our 5%-8% growth forecast, with investment management fees up 9%, while operating margins improved to 14.1% from 6.9% on contained expense growth. We are encouraged by the latest quarterly results and view BEN's diversified AUM mix as a positive development. Western Asset Management's legal issues may still be a concern, with former co-CIO Ken Leech's fraud trial set for June 2026. AUM advanced 9% to $1.68T, reflecting improved fund flows with $16.9B of net long-term inflows vs. $26.2B outflows a year ago, though FY 25 (Sep.) outflows totaled $97.4B. BEN's AUM comprises 40% equity, 26% fixed income, and 17% alternatives, providing greater diversification than some peers. We believe the Western Asset misconduct has significantly damaged the brand.