UPDATE: Credit Suisse Downgrades Janus Capital Group to Underperform on EPS Risk
Credit Suisse downgraded Janus Capital Group (NYSE: JNS) from Neutral to Underperform.
Credit Suisse commented, "Downgrading rating to Underperform and estimate 10% downside to 2014 EPS: Driven by our assumption that (1) net flows will only improve to -$9B/-$7B in '13/'14 from -$12B in '12 despite the new Dai-ichi Life alliance formed in August and stronger active equity flows over the last three weeks; (2) product mix shift will continue to reduce JNS's mgmt fee rate; and (3) performance fees of -$75M in '12 will only improve to about -$60M by '14 given the significant relative performance gaps at the largest performance fee generating funds (plus low '11 performance which will only roll-off 3Y calculations in '14)."
Janus Capital Group closed at $9.65 on Thursday.
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