Wells Fargo starts Franklin Resources at Underweight on ‘tough market’

As previously reported, Wells Fargo analyst Finian O’Shea initiated coverage of Franklin Resources with an Underweight rating and $26 price target. While he gives Franklin "strong marks" for the broad-based nature of the business and its "extensive additional diversification" in recent years, O’Shea says this is offset by potentially continuing fund flow challenges. Macro conditions suggest market choppiness might persist well into 2023 and the flow and revenue growth from the alt franchises do not appear adequate to offset incremental difficulties in other areas if market conditions worsen, O’Shea contends.