Morgan Stanley expects a firm result in the third quarter, although concedes the challenges are growing for Janus Henderson as leading indicators regarding retail flows remain negative and performance is soft.
There has been limited support to date from cross selling into new geographies and the broker suspects this will not gain momentum until FY20 when inflows are expected to return.
Cheap trading multiples and the potential for positive catalysts keep the broker on Overweight. In-Line industry view maintained. Target is reduced to $50 from $56.
Sector: Diversified Financials.
Target price is $50.00.Current Price is $35.92. Difference: $14.08 – (brackets indicate current price is over target). If JHG meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges – negative figures indicate an expected loss)