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Analyst Foresees Challenges Ahead for Janus Henderson Stock

The 12-month consensus price target is now right in line with current levels

Digital Content Manager
Oct 4, 2019 at 12:05 PM
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U.K.-based investment management name Janus Henderson Group PLC (NYSE:JHG) is eyeing its fourth consecutive loss today, following a downgrade to "underperform" from "market perform" at Keefe Bruyette. The analyst also slashed its price target to $19.50 from $21, foreseeing "challenged" organic growth for the equity as it enters a "seasonally weak" fourth quarter. At last check, JHG is down 1.7% at $20.80, set for its lowest close in nearly a month.

In fact, since the equity briefly broke north of of its 200-day moving average -- a trendline that has served as downward pressure on the charts since its formation in March 2018 -- it has already lost over 7% for the month. Now, Janus Henderson is testing its footing right atop its year-to-date breakeven level, which happens to coincide with its 80-day moving average. 

JHG Chart Oct 4

Analysts have already taken a conservative stance on JHG, with six of the seven in coverage calling the security a "hold." What's more, the consensus 12-month price target of $21.04 falls directly in line with current levels. 

Short sellers have been swarming JHG, too, with short interest up 16.8% in the last two reporting periods, but there's still room on the bearish bandwagon. Now, the 8.03 million shares sold short represent 5% of the stock's available float, and over a week of trading, at JHG's average daily pace. Should short interest continue to rise, it could create even more headwinds for the security. 

 

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