Goldman Sachs upgraded Franklin Resources (BEN ) to recommended list from market outperformer.
Analyst Richard Strauss says the upgrade was due to improving fundamentals. He sees the company's prospects getting significantly brighter, bolstered by an ongoing rebound in its investment performance, and a return to value-style investing. He says the company's strong returns have continued into May. He notes should a market rebound occur, he thinks the company will benefit disproportionately from subsequent acceleration in industry-wide equity fund flows. Strauss sees $1.90 fiscal 2002 (Sept.) earnings per share and $2.20 in fiscal 2003.