Franklin Resources shares to remain range-bound, says Keefe Bruyette

Keefe Bruyette analyst Aidan Hall says Franklin Resources underperformed meaningfully yesterday after disclosing that Western Asset Management’s Co-CIO Ken Leech received a Wells Notice from the SEC regarding past trade allocations involving treasury derivatives in select Western Asset-managed accounts. While details of the scope of the investigation remain limited, the stock will remain range-bound until more details are disclosed, the analyst tells investors in a research note. The firm keeps an Underperform rating on Franklin Resources with a $23 price target.