J.P. Morgan Chase & Co. is out with a research report on Janus Capital Group JNS and it is lowering its price target to $6.50 from $7.50, and it has an Underweight rating on shares.
In a note to clients, J.P. Morgan writes, "Janus' performance woes look set to get even more costly over the next three quarters. The now well-known ~$15mn/quarter impact of management fee reductions due to poor relative performance on seven Janus funds (disclosed by mgmt in 2Q11) will soon be joined by an estimated incremental $5mn/qtr reduction of management fees from 10 more funds whose 3-yr performance numbers will deteriorate as particularly strong performance from 2H08 and 1H09 rolls off. We estimate the annual impact of the pending decline in 3-year performance reduces Janus EPS by an incremental $0.06/yr."
Shares of JNS are up 10 cents to $6.89.
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