The downgrade comes after Bill Gross's investment firm said it would merge with U.K. fund management firm Henderson (HNDGF) yesterday.
The ratings cut "is predominantly based on valuation following Monday's announced merger of equals with HGG. We view shares of the pro forma earnings profile as fairly valued at approx. 14.5x 2017 EPS, which represents a premium to its peers," Jefferies wrote in an analyst note.
While Jefferies views the proposed transaction positively from a strategic sense, it noted that growth for the combined entity will remain difficult due to current industry trends.
Shares of Janus Capital were higher in pre-market trading today.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and increase in stock price during the past year.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: JNS