Out of the Gate: Shares of Janus Capital jump after upgrade

Shares jumped $1.25, or 4.7 percent, to $27.83 after the opening bell.

Friedman, Billings, Ramsey & Co. analyst Matt Snowling upgraded the Denver-based company to "Market Perform" from "Underperform" and raised his price target to $26 from $22. The new target nears Thursday's $26.58 close, and implies Snowling expects the stock to dip about 2 percent.

The upgrade comes after first-quarter earnings breezed past Wall Street's estimates.

"We view the downside risk to Janus to be more limited, since much of the negative news is now behind the name, and relative valuation is more reasonable," Snowling said in a note to clients.

Such negative factors include financial instruments such as structured investment vehicles, as well as lower earnings expectations, he said. Yet concerns about slowing retail investor activity and a "still-rich" valuation are preventing a "more positive" outlook on Janus, Snowling said.