UPDATE: Morgan Stanley Downgrades Janus Capital Group to Underweight on Fundamentals, Valuation

Morgan Stanley downgraded Janus Capital Group JNS from Equal-weight to Underweight and reduced its price target from $9 to $7.50. Morgan Stanley said, "Three reasons for the downgrade: 1) challenged fundamental outlook including intensifying equity outflows & continued fund underperformance, leading to negative performance fees; 2) fading technical support as Dai-ichi has already bought 11.1% of its minimum 15% stake and Morgan Stanley Dai-ichi analyst, Hideyasu Ban, views an outright acquisition as unlikely near term due to Dai-ichi's M&A objectives; and 3) valuation (13.3x 2013e P/E), is high relative to peers." Janus Capital Group closed at $8.24 on Monday.