Shares in Henderson Global Investors have been cut to a sell by analysts at Shore Capital after a dramatic surge in price this year left them trading well above their historic average.
In a note sent out ahead of their results later this week, Shore Capital cut its rating from a "hold" to a "sell" on the grounds that the company is likely to disappoint after such a good run.
Shares had risen from 118p to 209p in the last 12 months, a gain of almost 80%, and Shore analysts Owen Jones and Gary Greenwood noted how year-to-date alone shares are up almost 60%.
Shares have climbed following a number of positive updates from the group, initially in July when it delivered market-beating forecasts of profits of £100m, and then in August when it actually delivered profits of £101m.
However, Jones and Greenwood said as a result of its run higher, there was unlikely to be further good news to push shares forward.
"It would seem that this is now very much in the market and the room for disappointing news on Thursday is great, we'd suggest," the duo said.
The analysts added Henderson now trades on a "marked premium" to the sector of around 16 times full year earnings for 2013, which it cannot see as being sustainable.
"We do not feel this premium is justified especially with the added bonus of the shares now trading well above their historic average of 11.9x," they said.
"Such multiples may be justified with an excellent growth outlook for the company, which it does not currently command, and we feel that Thursday's update is unlikely to provide this."
This morning, following the release of Shore's note, shares in Henderson were down marginally, off 0.8% at 207.3p.
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