Irizarry noted that since the stock bottomed out at $15.50 in August, the stock has risen 35%, whereas other investment firms have risen an average of 16%. Janus shares are also trading at 32 times estimated 2006 earnings, a 45% premium to other asset managers, the analyst noted.
Irizarry said although the company has failed to grow, the stock has been bid up. He also predicts further outflows from Janus funds since the international sector has been doing so well and the company has few international offerings.
“We prefer owning AllianceBernstein, with similar exposure to growth, greater international exposure and a more attractive valuation,” Irizarry wrote.
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