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Janus Henderson Group (NYSE:JHG) stock gained 2.6% in Thursday late morning trading after KBW analyst Michael Brown upgraded the asset manager to Market Perform from Underperform on the heels of stronger-than-expected Q3 results.
The company’s “solid third-quarter result, better expense guidance, and meaningful share buyback authorization represents a confirmation that the transformation is on the right path,” Brown wrote in a Wednesday note to clients.
He noted a material improvement in flows would make him more constructive on the stock, but, for now, “estimates and valuation appear reasonable.’
Any such improvement will take time, he warned. “As such, near-term positive catalysts are limited, and while M&A could be one, potential implications to the balance sheet could actually be a negative catalyst for shares—at least initially.”
Brown’s Market Perform rating aligns with the SA Quant system rating and the average sell-side analyst rating, both at Hold.