Marking-to-market, Citi analysts have reduced estimates by double-digit percentages for FY19 and FY20. The analysts point out latest industry data suggest a sharp qoq deterioration for 4Q net fund outflows in both the US and Europe, plus the analysts think performance fees will be materially lower too.
Longer term, Citi remains of the view there is value up for grabs, but for now a patchy outlook dominates. Neutral rating retained, while the price target drops to US$22.75 (was US$25.90). For Australian investors, this translates to $31.60 from $36.35.
Sector: Diversified Financials.
Target price is $31.60.Current Price is $29.30. Difference: $2.30 – (brackets indicate current price is over target). If JHG meets the Citi target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).