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On Tuesday, TD Cowen reaffirmed its Buy rating on Janus Henderson Group (NYSE:JHG) shares with a price target of $51.00, significantly above the current price of $36.72. The endorsement comes as the firm identifies Janus Henderson as its top European pick, recognizing the asset manager’s significant revenue generation from the region, which includes the UK. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $25.30 to $57.00. The analysts at TD Cowen have emphasized the company’s resilience amidst short-term market volatility, attributing this to the efforts of the new management team in repositioning the company for long-term organic growth.
Janus Henderson’s management has been working towards maintaining a durable base fee rate, improving profit margins, and ensuring a strong capital return strategy. The company maintains a healthy 64.3% gross profit margin and has consistently paid dividends for 9 consecutive years, currently offering a 4.32% yield. InvestingPro analysis reveals a "GOOD" overall financial health score, supported by strong cash flows and liquid assets exceeding short-term obligations. Despite the current poor investor sentiment towards the company, TD Cowen foresees favorable trends that are expected to enhance the company’s value. The firm’s analysts believe that the underlying fundamentals of Janus Henderson are improving and that there are multiple opportunities for long-term value creation.
The statement from TD Cowen suggests that the current weak sentiment towards Janus Henderson could provide a strategic advantage, allowing the company to overcome investor skepticism. While the stock has experienced an 8.3% decline over the past week, it maintains an impressive 18.6% return over the past year. The analysts project a momentum build-up for flow recovery into the years 2025-2026, with expectations for increasing profit margins. Additionally, they anticipate that Janus Henderson’s management will continue to be proactive in capital returns, supporting stock repurchases and bolt-on transactions. These strategic moves are predicted to create a positive feedback loop for flow and fee rates.
Janus Henderson’s strategy has been centered around three core elements: the anticipation of a further fundamental upturn, the exploitation of various long-term value creation opportunities, and leveraging the current weak sentiment to its advantage. Based on InvestingPro’s comprehensive analysis, the stock appears undervalued, trading at a P/E ratio of 14.1x with strong fundamentals. These components are expected to collectively contribute to the asset manager’s future success and justify the Buy rating and $51 price target set by TD Cowen. For deeper insights into JHG’s valuation and 12+ additional ProTips, explore the detailed Pro Research Report available on InvestingPro.
In other recent news, Janus Henderson Group has reported strong financial results for the fourth quarter of 2024, exceeding analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.07, surpassing the forecasted $0.96, and reported revenue of $708.3 million, which was higher than the anticipated $685.71 million. Total (EPA:TTEF) assets under management (AUM) increased by 13% to $378.7 billion in 2024. In terms of analyst activity, UBS upgraded Janus Henderson’s stock rating from Neutral to Buy, raising the price target to $50, reflecting confidence in the company’s growth trajectory. Similarly, JPMorgan upgraded the stock to Overweight, increasing the price target to $53, citing effective strategies and strong balance sheet positioning under CEO Ali Dibadj. These upgrades follow Janus Henderson’s positive developments in net flows and expanding operating margins. Additionally, Janus Henderson’s focus on innovation and strategic acquisitions, such as NBK Capital Partners (WA:CPAP) and Victory Park Capital, were highlighted as key factors in its competitive positioning.
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