While there are signs outflows may be lower in the second half of the year, Morgan Stanley assesses a sustainable re-rating requires more evidence of the company addressing its structural challenges.
Investment performance is stabilising across the group, with the broker noting this is particularly so in the case of INTECH, where a sustained improvement could remove a key risk for outflows. Further cost savings and executing on the institutional growth option would make the broker more positive.
Equal-weight rating is maintained. Target is reduced to $33.30 from $35.00. Industry view is In-Line.
Sector: Diversified Financials.
Target price is $33.30.Current Price is $32.12. Difference: $1.18 – (brackets indicate current price is over target). If JHG meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).