Standard Life Aberdeen (LON:ADN) is trading at an attractive discount to its peer group, analysts at Jefferies have said. The comments came as the broker lifted its valuation on the blue-chip group.
Standard Life Aberdeen’s share price rose yesterday, adding 0.72 percent to close at 432.90p, outperforming the broader UK market, with the benchmark FTSE 100 index ending the session little changed. The group’s shares have added more than 27 percent to their value over the past year, and are up by some 16 percent in the year-to-date.
Jefferies reiterated its ‘overweight’ rating on Standard Life Aberdeen yesterday, raising its price target on the shares from 510p to 520p.
“Standard Life remains our one key ‘overweight’ among the UK listed asset managers,” the broker’s analyst Daniel Garrod commented, as quoted by Citywire. “We believe its discounted price/earnings multiple versus peers at only 13 times 2018 [estimated earnings] remains highly attractive.”
The analyst further pointed out that while the group had suffered outflows from its flagship Gars fund after poor performance, the ‘momentum appears positive’ and “improvement in macro sentiment and performance should drive inflows into Aberdeen’s emerging markets funds”.
The comments come after Standard Life Aberdeen’s financial planning 1825 unit recently bought a Bristol-based company as it looks to establish a South West regional office.
Other analysts on Standard Life Aberdeen
The 16 analysts offering 12-month price targets for Standard Life Aberdeen for the Financial Times have a median target of 465.00p on the shares, with a high estimate of 520.00p and a low estimate of 376.00p. As of October 27, the consensus forecast amongst 19 polled investment analysts covering the FTSE 100 group has it the company will outperform the market.