UPDATE: Citigroup Raises Target on Franklin Resources to $120

Citigroup reiterates its Neutral rating on Franklin Resources (NYSE: BEN) and raises its price target by $8 to $120, reflecting pick-up in flow data. Citigroup says, "AUM of $704B at 1/31, +5.1% MTM from $670B at 12/31 and 70 bps (~$5B) ahead of our $699B forecast (Figure 1). Favorably, data suggest flows improved in January consistent with management commentary in concert with F1Q12 earnings around traction in income, hybrids, and muni's, for instance, as well as slowing redemptions in global bonds. We are encouraged by: 1) the snapback in volumes versus a tough December; and, 2) broadening flow picture though traction in domestic equities still appears elusive, in our view, not only for BEN but also for the industry given uneven ICI data recently."BEN closed at $116.70 a share yesterday.