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Janus Henderson shares hold Buy rating on strategic direction

EditorNatashya Angelica
Published 06/24/2024, 11:20 AM
JHG
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On Monday, TD Cowen maintained a Buy rating on shares of Janus Henderson Group (NYSE:JHG), with a 12-month stock price target of $37.00. The endorsement follows a series of investor meetings sponsored by TD Cowen with the Chief Financial Officer of Janus Henderson on June 21, 2024.

The analyst from TD Cowen reaffirmed the investment firm's confidence in Janus Henderson's strategic direction. The discussions during the meetings emphasized that Janus Henderson is progressing toward a long-term positive net new asset annual organic growth rate (LT NNA AOGR). The analyst expects the company's fee rates to remain relatively stable.

Moreover, there is an anticipation of margin improvement for Janus Henderson. The analyst expressed a positive outlook on the company's ability to increase its profit margins going forward.

The TD Cowen analyst also highlighted the potential for Janus Henderson's capital return policy to continue to be accretive to shareholders. This suggests that the company's approach to returning capital to its investors is expected to enhance shareholder value.

In summary, the recent discussions have reinforced the belief that Janus Henderson is on a favorable trajectory, with expectations of sustainable fee rates, margin expansion, and beneficial capital returns for its shareholders.

In other recent news, Janus Henderson Group has seen a series of significant developments. The asset management company recently reported a 5% increase in its assets under management (AUM), reaching a two-year high of $352.6 billion. Still, it also experienced net outflows of $3 billion, mainly due to institutional redemptions.

In addition to these financial results, Janus Henderson announced key acquisitions and partnerships aimed at diversifying its business and entering new markets, including the European ETF market and the emerging markets private capital space.

TD Cowen, a financial analyst firm, has been closely monitoring these developments. The firm recently upgraded Janus Henderson's stock from Hold to Buy and increased the price target to $37, up from a previous $34.

This decision was based on an anticipated improvement in the company's Mutual Fund performance fees and the company's commitment to returning capital to shareholders. TD Cowen also raised its adjusted earnings per share (EPS) estimates for Janus Henderson for the years 2024 and 2025, reflecting a more optimistic view of the company's earnings potential.

These are just a few of the recent developments for Janus Henderson, a company that continues to make strategic moves to capitalize on long-term growth opportunities in the asset management industry. As these developments unfold, investors and financial analysts alike will be watching closely to see how they impact the company's financial performance and market position.

InvestingPro Insights

Aligning with the positive sentiment from TD Cowen, Janus Henderson Group (NYSE:JHG) exhibits a robust financial posture. According to InvestingPro data, the company's market capitalization stands at a solid $5.45 billion, underpinned by a reasonable price-to-earnings (P/E) ratio of 12.8. The P/E ratio, when adjusted for the last twelve months as of Q1 2024, slightly increases to 13.13, still indicating a potentially attractive valuation relative to near-term earnings growth.

InvestingPro Tips highlight that Janus Henderson has a track record of raising its dividend for three consecutive years, with a notable dividend yield of 4.6% as of the latest data. This aligns with the analyst's view on the company's strong capital return policy. Furthermore, the company's liquid assets exceed its short-term obligations, suggesting a comfortable liquidity position that could support ongoing operations and dividend payments.

For those looking to delve deeper into Janus Henderson's financials and future prospects, InvestingPro offers additional insights and tips. There are 9 more InvestingPro Tips available, which could further inform investment decisions. To access these, investors are encouraged to explore the full range of analysis at https://www.investing.com/pro/JHG. Remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing the value of your investment research.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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