Franklin Resources price target raised to $23 from $20 at BMO Capital

BMO Capital raised the firm’s price target on Franklin Resources (BEN) to $23 from $20 but keeps a Market Perform rating on the shares after its Q1 earnings beat. The company’s guidance for flat operating expense growth this fiscal year and further expense efficiencies next year offered a relief that operating margin could bottom in the mid-20%s before subsequently improving towards the longer-term 30% target, even though significant Western-related net flow uncertainty remains, the analyst tells investors in a research note.