UPDATE: Goldman Sachs Downgrades Janus Capital Group to Sell on Flow Outlook

Goldman Sachs reduced its rating on Janus Capital Group JNS from Neutral to Sell and lowered its price target from $8 to $7. Goldman Sachs noted, "We expect JNS shares to underperform given: (1) Soft relative equity fund performance and tougher INTECH performance comparisons suggest more outflows; (2) pressure on revenues and op. margin from negative performance fees; and (3) we see multiple compression as investors refocus on soft fundamentals as technical tailwind from Dai-ichi's purchase of a 20% stake rolls off. We lower our 2012/2013/2014 EPS estimates to $0.56/$0.53/$0.60 from $0.56/$0.60/$0.71 on modest flow/margin expectations, 9-15% below consensus." Janus Capital Group closed at $8.20 on Friday.