Goldman Sachs
May 26, 2026
Franklin Resources Inc. (BEN): Improving Organic Growth
Single Stock ReportEquitiesRates CreditPrivate MarketsFinancials
Goldman Sachs maintains a Buy rating on Franklin Resources (BEN) following management meetings that reinforced a path toward 2-3% organic growth and significant margin expansion to 31-32% by 2027.
Key Takeaways
- 1.BEN is transitioning to durable positive organic growth (+2% to +3% range) after a decade of outflows, driven by alternatives and institutional relationships.
- 2.Significant operating leverage is expected, with margins projected to reach 31%-32% by 2027/2028, significantly above current consensus expectations.
- 3.The firm is expanding its alternatives platform (now >20% of fees), with strong performance in private credit (BSP) and secondaries (Lexington).
Table of Contents
- Key Data
- GS Forecast
- Ratios & Valuation
- Growth & Margins (%)
- Assets under management
- Price Performance
- Income Statement ($ mn)
- Balance Sheet ($ mn)
- Cash Flow ($ mn)
- Organic Growth
- Alternatives / Private Markets
- Lexington
- Private Credit
- Real Estate
- Retail/Wealth
- Fixed Income
- Active Equities
- Multi-Assets
- Expenses
- Capital Allocation
- Valuation
- Disclosure Appendix
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Authors
Alexander BlosteinAditya Sharma, CFAAnthony Corbin
Securities
BENWAMCOBSPLexington
Themes
Organic Growth TurnaroundOperating Leverage & Margin ExpansionExpansion into Alternatives/Private Markets
Regions
North AmericaEuropeAsia PacificUnited StatesGermany