Franklin Resources shares rise on managed assets growth

Franklin Resources shares rose $2.56, or 2.7 percent, to $100.04 in afternoon trading. Shares have traded between $83.27 and $145.59 during the past year.

On Thursday evening, Franklin Resources said its assets under management rose to $617.5 billion at the end of April, from $591.1 billion at the end of March and from $601.1 billion at the end of April 2007.

"Based on our assumptions, we estimate about $3 billion of net inflows for the month of April, a sharp snapback following a weak start to the year," Sandler O'Neill & Partners LP analyst Michael Kim wrote in a research note.

With assets under management at $617.5 billion at the end of April, Franklin Resources' assets under management already eclipse what Kim expected for the end of the quarter in June.

Because of the better-than-expected data and improving global markets, Kim increased his fiscal 2008 earnings estimate to $7.13 per share from $7.08 per share. Kim raised his fiscal 2009 estimate to $7.88 per share from $7.73 per share.

He raised his price target $3 to $114.