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Research Alert: CFRA Keeps Hold Opinion On Shares Of Janus Henderson Group Plc

· 02/05/2021 13:19

06:15 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target price of $33, or 13.2x our 2021 EPS estimate of $2.50 (cut today by $0.10) and 12.1x our 2022 EPS estimate of $2.72, above the shares' three-year average forward multiple of 9.7x (reflecting lower fund outflows) but below the peer group average of 14.8x (that incudes many firms with better fund flow trends). Q4 EPS of $1.02 versus $0.59 topped our $0.65 EPS estimate and the $0.77 consensus forecast on 15.6% higher revenues and wider operating margins (34.5% versus 25.7%). Full-year EPS of $0.87 versus $2.21 lagged our $2.57 EPS estimate, the $2.60 consensus forecast as 4.8% higher revenues were offset by an acquisition-driven 30% rise in operating costs. We forecast 5%-8% higher revenues in 2021, with growth of 2% to 4% expected in 2022. We applaud recent margin trends, but JHG is still grappling with net asset outflows, which totaled $24.4B in 2020 (versus $27.4 in 2019). Given these trends, we view the shares as fairly valued, but currently yielding 4.7%, they are worth holding.