JPMorgan upgrades this asset management stock, calls for a 20% gain ahead

Janus Henderson is becoming a standout name in the asset management business, according to JPMorgan. Analyst Kenneth Worthington upgraded the stock to overweight from neutral following the company’s fourth-quarter earnings release late last month. Worthington also raised his price target on the stock to $53 from $44, indicating 20.5% upside potential from Tuesday’s close. Janus Henderson on Jan. 31 posted fourth-quarter earnings and revenue that beat expectations, driven in part by its fixed in come business. Worthington cited his confidence in CEO Ali Dibadj’s initiatives to upgrade and refocus the firm to increase its market share and take advantage of its strong balance sheet as catalysts for the upgrade. “We see Janus as the turnaround story in traditional asset management,” Worthington wrote in a note. “The difference between Janus and peers that are pursuing a similar strategy is that Janus’s core business has better performance and [management] is being more innovative around growth priorities,” Worthington added. The firm is on a path for sustainable organic growth, and its recent results show that it is able to win more businesses, the analyst noted. “While we still envision a period of heightened flows risk and a long road ahead in the transformation journey, we acknowledge the early progress in the strategic initiatives and we have increasing confidence in the management team’s ability for continued successful execution,” Worthington said. Worthington’s rating puts him in the minority of those covering the stock. LSEG data shows that nine of 10 analysts who cover Janus Henderson have a hold rating on it. The average analyst price target signals upside of 9%. Shares added around 1% Wednesday before the bell. Over the last 12 months, the stock has surged 47.4%.