11:13 AM EDT, 05/06/2026 (MT Newswires) -- Franklin Resources (BEN) is showing signs of an "early-stage turnaround"as improving core fund flows and moderating outflows at Western Asset Management strengthen business momentum, Morgan Stanley said in a report emailed Wednesday.

The investment bank said Franklin has posted nine consecutive quarters of "positive net flows"excluding Western, while quarterly Western-related outflows have declined to about $4 billion from a peak of roughly $68 billion a year earlier.

Franklin's "repositioning toward higher-growth areas,"including separately managed accounts, ETFs and alternatives, is helping stabilize the firm's "trajectory,"though "fee compression"and shifts toward "lower-fee products"remain structural challenges, according to the report.

Morgan Stanley upgraded Franklin Resources to equal-weight from underweight and raised the price target to $31 from $21, citing improving "flow dynamics"and a more balanced risk-reward profile.

Price: 31.13, Change: +0.67, Percent Change: +2.20