Franklin Resources (NYSE:BEN) Moving from Bonds to Equities

With a slowdown in the bond market, Franklin Resources (NYSE:BEN) has positioned themselves to begin a move into equities, according to Ticonderoga.

"BEN reported AUM of $642.3bn as of November 30, 2010, down 3.3% from October and in line with our estimate. We note that AUM includes a previously announced $12bn outflow from a low-fee hybrid product; adjusted for the outflow, AUM was down 1.5%...The slowdown in global bonds was a bit more than expected, but we have assumed an even larger slowdown in our model, leaving us comfortable with our estimate going forward. The improved global equity flow is a positive, and we are growing increasingly confident that BEN is well positioned for a rotation into equities," said Ticonderoga.

They maintain a "Buy" rating on Franklin Resources, which is trading at $116.43, down $2.49, or 2.09 percent, as of 11:44AM EST. Ticonderoga has a price target of $135 on Franklin.