Bendigo Bank
BEN
$32.29
-0.28%
Franklin Resources, Inc., operating as Franklin Templeton, is a global asset manager providing investment services to individual and institutional investors, with $1.780 trillion in assets under management as of May 2026. The company is a well-established player in the asset management industry, distinguished by its global reach and diversified product mix spanning equity, fixed-income, multi-asset, alternatives, and money market funds. The current investor narrative centers on the company's ability to sustain organic growth amid shifting market conditions, with recent attention on its expanding alternatives platform and the impact of market volatility on fee-based revenues.…
BEN
Bendigo Bank
$32.29
Related headlines
BEN 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Bendigo Bank's 12-month outlook, with a consensus price target around $34.45 and implied upside of +6.7% versus the current price.
Average Target
$34.45
0 analysts
Implied Upside
+6.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$26 - $40
Analyst target range
The stock is covered by 11 analysts, with a consensus recommendation of 'hold' (mean rating 2.73 on a 1-5 scale where 1 is strong buy). The average price target is $34.45, implying 5.6% upside from the current price of $32.63. The distribution shows 2 buys, 7 holds, and 2 sells, reflecting a cautious but not bearish sentiment. The target range spans from a low of $26.00 to a high of $40.00, a spread of 54% relative to the current price, indicating high uncertainty among analysts. The high target of $40.00 assumes successful execution of growth strategies and market tailwinds, while the low target of $26.00 reflects risks such as market downturns or fee compression. Recent rating actions show mixed signals: Morgan Stanley upgraded from Underweight to Equal Weight in May 2026, while Barclays upgraded from Underweight to Equal Weight in April 2026, suggesting some positive momentum in analyst sentiment.
Bulls vs Bears: BEN Investment Factors
Franklin Resources presents a mixed investment case. On the bullish side, revenue growth is accelerating, operating margins are expanding, and the forward P/E of 10.5x suggests significant earnings recovery is priced in. The balance sheet is solid with ample free cash flow. However, the trailing P/E of 25.4x is expensive relative to peers, analyst sentiment is cautious with limited upside to the average target, and the high beta introduces substantial downside risk. The single most important tension is whether the expected earnings rebound materializes: if forward EPS of $3.85 is achieved, the stock is undervalued; if earnings disappoint, the high trailing multiple could compress sharply. Currently, the bear case has slightly stronger evidence given the cautious analyst consensus and high payout ratio, but the bull case is compelling if growth continues.
Bullish
- Strong Revenue Growth Acceleration: Revenue grew 8.7% YoY in Q2 FY2026 to $2.295B, accelerating from 2.1% in Q1 and recovering from a -0.3% decline in Q4 FY2025. This trend indicates improving market conditions and successful asset gathering.
- Significant Earnings Rebound Expected: Forward P/E of 10.5x is a 30% discount to the industry average of 15x, implying analysts expect a sharp earnings recovery. Trailing EPS was depressed at $1.28 but forward EPS is estimated at $3.85, a 201% increase.
- Expanding Operating Margins: Operating margin improved to 14.1% in Q2 FY2026 from 6.9% a year earlier, reflecting better cost control. This demonstrates operational leverage as revenue grows.
- Solid Balance Sheet with Low Leverage: Current ratio of 2.71 and debt-to-equity of 1.10 indicate manageable leverage and strong liquidity. Trailing twelve-month free cash flow of $929.7M provides ample financial flexibility.
Bearish
- High Trailing P/E vs. Peers: Trailing P/E of 25.4x is a 69% premium to the asset management industry average of 15x, suggesting the stock is expensive on current earnings. This valuation leaves little room for error.
- Mixed Analyst Sentiment: Consensus rating is 'hold' with a mean score of 2.73 out of 5, and only 2 of 11 analysts rate it a buy. The average target of $34.45 implies just 5.6% upside, limiting near-term return potential.
- High Beta Amplifies Downside Risk: Beta of 1.576 means the stock is 57.6% more volatile than the market. In a market downturn, BEN could fall significantly more than the S&P 500, as seen in the 19.2% max drawdown over the past year.
- Dividend Sustainability Concerns: Payout ratio of 130.3% indicates the dividend exceeds earnings, which may not be sustainable if earnings do not recover as expected. The high dividend yield of 5.75% could be at risk.
BEN Technical Analysis
The stock is in a strong uptrend, with a 1-year price change of +33.1%, significantly outperforming the S&P 500's 18.4% gain. The current price of $32.63 sits at 93.5% of its 52-week range ($21.11–$34.92), indicating the stock is near the top of its range and reflecting robust momentum. This positioning near highs suggests bullish sentiment but also raises caution about potential overextension. Over the past 3 months, the stock has gained 19.7%, while the 1-month change is -2.0%, showing a short-term pullback from the recent peak of $34.44 on July 6. This divergence between the strong 3-month trend and the recent 1-month decline could signal a temporary consolidation or profit-taking after a sharp rally, rather than a trend reversal. The stock's beta of 1.576 indicates it is 57.6% more volatile than the market, amplifying both upside and downside moves. The 52-week low of $21.11 provides a key support level, while the 52-week high of $34.92 is a resistance level; a breakout above $34.92 would signal continued strength, while a breakdown below $32.00 could indicate further weakness.
Beta
1.58
1.58x market volatility
Max Drawdown
-19.2%
Largest decline past year
52-Week Range
$21-$35
Price range past year
Annual Return
+30.5%
Cumulative gain past year
| Period | BEN Return | S&P 500 |
|---|---|---|
| 1m | -4.4% | +0.6% |
| 3m | +19.1% | +3.4% |
| 6m | +27.6% | +7.1% |
| 1y | +30.5% | +16.4% |
| ytd | +35.7% | +8.3% |
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BEN Fundamental Analysis
Revenue has shown steady growth, with the most recent quarter (Q2 FY2026, ending March 31, 2026) reporting $2.295 billion, up 8.7% year-over-year from $2.111 billion in the prior-year quarter. This marks an acceleration from the 2.1% growth seen in Q1 FY2026 and a recovery from the -0.3% decline in Q4 FY2025. The growth is driven by higher investment advisory fees and distribution revenues, reflecting market appreciation and net inflows. The company is profitable, with net income of $346.6 million in Q2 FY2026, up from $151.4 million in the year-ago quarter, and a net margin of 15.1% compared to 7.2% a year earlier. Gross margin improved to 52.8% from 78.9% in the prior year, but this decline is due to a shift in revenue mix toward lower-margin distribution services; operating margin expanded to 14.1% from 6.9%, indicating improved cost control. The balance sheet is solid, with a current ratio of 2.71 and debt-to-equity of 1.10, indicating manageable leverage. Free cash flow was -$31.4 million in Q2, but trailing twelve-month free cash flow stands at $929.7 million, providing ample liquidity. ROE is 4.3%, reflecting moderate profitability relative to equity.
Quarterly Revenue
$2.3B
2026-03
Revenue YoY Growth
+8.7%
YoY Comparison
Gross Margin
52.8%
Latest Quarter
Free Cash Flow
$929700000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BEN Overvalued?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 25.4x, while the forward P/E is 10.5x, implying the market expects significant earnings growth in the coming year. This large gap suggests that current earnings are depressed (likely due to one-time charges or market conditions) and that analysts anticipate a sharp rebound. Compared to the asset management industry average P/E of approximately 15x, Franklin's trailing P/E of 25.4x represents a 69% premium, but the forward P/E of 10.5x is a 30% discount, indicating the market is pricing in a recovery. Historically, the stock's trailing P/E has ranged from 5.7x to 39.8x over the past five years; the current 25.4x is above the median of ~15x, suggesting it is not cheap on a trailing basis but is reasonable on a forward basis if earnings materialize as expected.
PE
25.4x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 6x~28x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: The primary financial risk is the high payout ratio of 130.3%, meaning the dividend is not fully covered by earnings. If the expected earnings recovery falters, the dividend could be cut, potentially triggering a sell-off. Additionally, free cash flow was negative -$31.4M in Q2, though TTM FCF remains strong at $929.7M. The company's net margin of 15.1% is moderate, and any revenue slowdown could pressure profitability. Debt-to-equity of 1.10 is manageable but not negligible, and interest expense of $19.9M in Q2 consumes a portion of operating income.
Market & Competitive Risks: The stock's beta of 1.576 makes it highly sensitive to market movements, with a 1-year price change of +33.1% versus the S&P 500's +18.4%, but also amplifying losses in downturns. The asset management industry faces secular headwinds from fee compression and passive investing. Franklin's AUM of $1.78 trillion is diversified, but 57% retail weighting exposes it to investor sentiment shifts. The 52-week high of $34.92 is near the current price, suggesting limited upside without a catalyst. Analyst targets range from $26 to $40, indicating high uncertainty.
Worst-Case Scenario: A severe market downturn combined with earnings disappointment could drive the stock to its 52-week low of $21.11, representing a -35.3% decline from the current price of $32.63. This scenario could be triggered by a recession reducing AUM and fee income, coupled with a dividend cut if earnings fail to recover. The historical max drawdown of -19.2% over the past year provides a reference, but a more severe correction could exceed that.