Given low expectations, its fair to say that Janus Henderson’s weak result was in line with consensus, the broker suggests. Assets under management growth was flat due to ongoing outflows and revenue margins were stable.
The move to a single CEO was a shock, but Dick Weil’s appointment could assist in firming up the relationship with Dai-ichi, which the broker notes is a large growth opportunity. Despite valuation support at this level the broker does not see any near term catalysts.
Neutral and $45 target retained.
Sector: Diversified Financials.
Target price is $45.00.Current Price is $40.04. Difference: $4.96 – (brackets indicate current price is over target). If JHG meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).