Janus Henderson Is A 'Turnaround Story' With Growing Suite Of Fixed Income ETFs: Analyst

Janus Henderson Group PLC (NYSE:JHG) is a turnaround story in traditional asset management.

The firm’s management is taking several steps to leverage its “strong balance sheet to acquire new capabilities and distribution," according to JPMorgan.

The Janus Henderson Group Analyst: Analyst Kenneth Worthington upgraded the rating for Janus Henderson Group from Neutral to Overweight, while raising the price target from $44 to $53.

The Janus Henderson Group Thesis: The company reported fourth-quarter adjusted revenue of $568 million, up 16% sequentially and 25% year-on-year, "driven by higher AUM, improving net sales, and performance fees," Worthington said in the upgrade note.

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Here’s a breakdown of Janus Henderson's report:

• Solid net sales of $3.3 billion were driven by fixed-income strategies, Worthington stated, praising the "growing suite of fixed-income ETF products.”
• Adjusted earnings came in at $1.07 per share, surpassing expectations
• Operating margin expanded to 36.1%, from the previous quarter's 34.9% and the year-ago quarter's 34.3%
• Other concerns are mitigated by accelerating ETF flows, improving institutional flows, a solid longer-term performance track record, and a build out of “new products," Worthington added.

Price Action: Shares of Janus had risen by 2.18% to $44.98 at the time of publication on Wednesday.

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