Franklin Resources: Rising Markets Contributed to a Nearly 8% Increase in Our Fair Value Estimate

We've increased our fair value estimate for narrow-moat-rated Franklin Resources to $28 per share from $26 to account for revised near-term expectations for AUM, revenue, and profitability since our last update. With the U.S. equity markets rising 12% in the December quarter of 2023, and the credit markets also rising 7%, Franklin reported a 6% increase in its assets under management, or AUM, during the period. This left the firm in a better position than we had been expecting coming into calendar 2024, allowing us to raise our fair value estimate close to 8%.