Standard Life Aberdeen share price: Analysts weigh in on merged group ahead of results

Hargreaves Lansdown points to GARS fund outflows

Standard Life Aberdeen share price: Analysts weigh in on merged group ahead of results

Hargreaves Lansdown has pointed to fund outflows at Standard Life Aberdeen (LON:SLA) ahead of the group’s half-year results next week. The update will come about a year following the merger between Standard Life and Aberdeen Asset Management.

Standard Life Aberdeen’s share price has climbed higher in London in today’s session, having added 1.20 percent to 307.86p as of 14:41 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.76 percent higher at 7,633.61 points The group’s shares have lost a little more than 30 percent of their value over the past year, as compared with about a two-percent gain in the Footsie.

SLA to post results

With the update set to come about a year following the merger between Standard Life and Aberdeen Asset Management, Proactive Investors quoted Hargreaves Lansdown’s equity strategist George Salmon as commenting that when the companies merged both were seeing significant outflows.

“Fast forward to the present day, and not much has changed,” the analyst continued, adding that the broker would not “be surprised if outflows in the flagship GARS fund have increased,” with the fund having “continued to deliver a poor investment performance, losing around four percent”.

“A steady stream of outflows isn’t a great look for the group which is increasingly focused on asset management after the sale of its remaining life books,” Salmon concluded.

Proactive Investors also reports that UBS expects Standard Life Aberdeen to deliver half-year revenues of £1.61 billion and gross operating profit of £536 million. The analysts have further pencilled in £491 million for the after-tax adjusted profit figure.

Analyst ratings update

The 16 analysts offering 12-month price targets for Standard Life Aberdeen for the Financial Times have a median target of 417.50p on the shares, with a high estimate of 490.00p and a low estimate of 338.00p. As of July 27, the consensus forecast amongst 19 polled investment analysts covering the blue-chip group has it that the company will outperform the market. 

As of 15:02 BST, Friday, 03 August, Standard Life Plc share price is 364.05p.

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