Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
On Wednesday, TD Cowen’s analyst Bill Katz increased the price target for Janus Henderson Group (NYSE:JHG) to $46.00, up from the previous target of $41.00, while reiterating a Buy rating on the stock. The adjustment follows the recent contract renewal for the CEO and a strong market rally, with the company showing impressive momentum through an 8.67% return over the past week. Katz highlighted Janus Henderson as the firm’s preferred choice within the traditional asset management sector. According to InvestingPro analysis, the company’s financial health score is rated as GREAT, supported by strong fundamentals and consistent dividend payments for 9 consecutive years.
Katz’s optimism stems from Janus Henderson’s long-term organic growth prospects compared to its current P/E multiple of 15.26x. The new 12-month price target of $46 is based on 12.5 times the firm’s revised 2026 earnings estimate, an increase from the prior multiple of 12. Katz noted that despite Janus Henderson’s shares lagging behind peers year-to-date, due to exceptional performance in 2024 and a recent slowdown in fixed income and ETF volumes, the company’s business model continues to show increasing efficacy, demonstrated by its robust revenue growth of 17.85% over the last twelve months.
The analyst expects that consensus estimates for Janus Henderson will need substantial upward revisions. A positive update is anticipated in conjunction with the second-quarter results, although this will not be available for a few months. In the meantime, May has seen an improvement in the flow picture for Janus Henderson’s ETF offerings, with expectations of broadening drivers into the second half of 2025.
Katz concluded by reasserting Janus Henderson’s position as the top pick in the traditional asset management space, suggesting that the company’s diverse drivers and improving model efficacy position it favorably for future growth.
In other recent news, Janus Henderson Group PLC reported first-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $0.79 compared to the anticipated $0.77. Revenue for the quarter was $621.4 million, slightly below the forecasted $623.56 million but representing a 12.6% increase from the same period last year. The company experienced net inflows of $2.0 billion, a significant turnaround from the $3.0 billion net outflows in the previous year, and its assets under management rose to $373.2 billion. Janus Henderson also announced a 3% increase in its quarterly dividend and authorized a $200 million share repurchase program. Additionally, the company has formed a strategic partnership with Guardian Life Insurance (NSE:LIFI) to manage $45 billion in assets. At the 2025 Annual General Meeting, shareholders approved all resolutions, including the election of directors and the authorization to repurchase common stock. PricewaterhouseCoopers LLP was ratified as the independent auditor for the fiscal year. These developments reflect ongoing confidence in Janus Henderson’s financial strategies and management.
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