Citigroup Reiterates Hold Rating on Janus Capital Group (JNS)

Citigroup is out with a research report this morning, where it reiterates its Hold/High Risk rating on Janus Capital Group JNS; it has a $12.00 price target on the stock, up from $11.50. The Citi analysts said that, following a meeting with company management, they feel the flow story remains tepid, margin improvement somewhat limited, and active capital management still seems several quarters away. JNS is not their favorite asset manager. During the meeting, management noted that institutional activity remains dormant for LC active/quant domestic equities. The analysts said, “Favorably, management looks to balance investment spend versus margins, but comp/revenue ratio likely to drift toward higher end of 39% to 40% range while marketing and G&A costs tick higher into 2011 as franchise build-out continues.”