UBS Bullish on Henderson-Janus Deal -- Market Talk
0033 GMT - Like its namesake, the Roman god of change, Janus (JNS) represents a
transformational deal for Henderson (HGG.AU). So says UBS as it lifts the Australia-based
fund manager to buy from neutral. "Significantly enhanced scale, distribution and
diversification see it better equipped to deal with ongoing headwinds from a gradual
global shift to passive and rising regulatory costs," UBS says. The brokerage also thinks
cost savings from the deal will support earnings, and a potential recovery in performance
fees off historical lows should support proforma EPS growing at a compound annual rate of
9% over three years. HGG last traded at A$4.11.
HGG Price at posting:
$4.16 Sentiment: Buy Disclosure: Held
