UPDATE: Citigroup Downgrades Janus Capital Group to Sell on Structural and Valuation Issues
Citigroup downgraded Janus Capital Group (NYSE: JNS) from Neutral to Sell, price target lowered from $8.00 to $7.75.
Citigroup commented, "Three reasons: 1) we think investors are overly sanguine on JNS's flow recovery prospects, with 4Q reinforcing many challenges for the franchise; 2) despite headline beat, underlying operating leverage remains elusive (and still disappointing on a core basis) – a trend likely to persist into 2013-14, we believe, even as markets trend higher; and, 3) valuation mismatch, particularly given limited strategic flexibility and platform positioning."
Janus Capital Group closed at $9.65 on Thursday.
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