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On Thursday, BofA Securities shifted its stance on Janus Henderson Group (NYSE:JHG), upgrading the investment firm’s stock from Neutral to Buy, though reducing the price target to $43 from the previous $57. According to InvestingPro data, the stock currently trades at a P/E ratio of 14.2x and has demonstrated strong revenue growth of 17.7% over the last twelve months. Analysts at BofA Securities cited a significant reduction in their 2027 earnings estimates, down by 25%, as a key factor for the adjusted price objective. The revision was primarily influenced by the underperformance of the JHG Horizon Biotech Fund, which saw an 8% return decrease year-to-date and had been a significant contributor to the company’s performance fees in the fourth quarter of 2024.
Despite the cut in the price target, BofA Securities highlighted the stability of Janus Henderson’s management fee rate, noting that it has not declined even with a negative mix shift in the company’s funds. This stability is viewed as a positive aspect of the firm’s financial health. InvestingPro analysis supports this view, showing the company maintains a "GOOD" Financial Health Score, with particularly strong cash flow metrics. The company also offers an attractive 4.2% dividend yield, having maintained dividend payments for 9 consecutive years.
The analysts also pointed to potential benefits for Janus Henderson from increased fixed income flows, expecting bond reallocations to play a favorable role for the firm. The investment firm’s CEO received praise for delivering early results, which included a positive flow inflection in 2024, indicating a turnaround in client investment inflows.
Furthermore, BofA Securities expressed confidence in Janus Henderson’s capability to attract top talent within the industry, which is considered an important element for the company’s future growth and performance.
Janus Henderson Group has not publicly responded to the upgrade or the revised price target at the time of reporting. The new rating and price target reflect BofA Securities’ adjusted expectations for the company’s financial trajectory and market position.
In other recent news, Janus Henderson Group reported strong financial results for the fourth quarter of 2024, with adjusted earnings per share (EPS) of $1.07, surpassing the expected $0.96. The company’s revenue also exceeded forecasts, reaching $708.3 million against the anticipated $685.71 million. UBS upgraded Janus Henderson’s stock rating from Neutral to Buy, raising the price target to $50, citing positive net flows and expanding operating margins as key factors. Similarly, JPMorgan upgraded the stock to Overweight, increasing the price target to $53, highlighting the firm’s effective strategies and solid long-term performance record.
TD Cowen maintained its Buy rating on Janus Henderson with a $51 target, recognizing the company’s resilience amid market volatility and its potential for long-term value creation. Furthermore, Janus Henderson announced an extension of its exchange offer for $400 million in senior notes, providing note holders additional time to participate. These recent developments reflect a period of significant activity and optimism surrounding Janus Henderson’s financial and strategic positioning.
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