Numis has retained its bullish stance on Standard Life Aberdeen (LON:SLA), flagging ‘significant value opportunity’ for investors willing to be patient with the fund management giant, Citywire reports. The comments are a boost for the FTSE 100 group, whose stock came under pressure last week, as Lloyds Banking Group (LON:LLOY) moved to offload its remaining stake in the company.
Standard Life Aberdeen’s share price fell in the previous session, losing 1.04 percent to close at 350.50p. The stock underperformed the broader UK market, with the benchmark FTSE 100 index ending the session flat in percentage terms.
Numis reiterated its ‘buy’ rating on Standard Life Aberdeen yesterday, with a price target of 452p on the shares. Citywire reported that the broker’s analyst David McCann had updated his forecasts for the return of capital, additional cost savings, and debt, noting that the market was ‘materially undervaluing’ the asset manager, and that Numis believed that it offered “a significant value opportunity to patient investors”.
The analyst, however, cautioned that the ‘catalysts may not be short term’ but that “patient shareholders will be well rewarded after a period of time as further disposals, associated return of capital might be made as the investment cash evolves to that of a pure play asset manager”.
Other analysts on SLA
As of June 12, the consensus forecast amongst 18 polled investment analysts covering Standard Life Aberdeen for the Financial Times has it that the company will outperform the market. According to MarketBeat, the blue-chip asset manager currently has a consensus ‘buy’ rating and an average price target of 463.46p.
UBS turned bullish on the company earlier this week, arguing that it felt that Standard Life Aberdeen’s valuation now more than reflected its challenges.