Standard Life Aberdeen share price: Deutsche Bank trims rating on group

on Jan 8, 2019
Updated: Oct 21, 2019

Deutsche Bank has trimmed its rating on Standard Life Aberdeen (LON:SLA), pointing to outflows from high-margin funds, Proactive Investors reports. The move came as the analysts also downgraded FTSE 100 peers St James’s Place (LON:STJ) and Hargreaves Lansdown (LON:HL) as part of a wider negative turn on the European insurance sector.

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Standard Life Aberdeen’s share price fell in the previous session, giving up 1.26 percent to close at 258.65p, underperforming the broader London market, with the benchmark FTSE 100 index giving up 26.54 points to close 0.39 percent lower at 6,810.88. The group’s shares have lost more than 47 percent of their value over the past year, as compared with a near 12-percent drop in the Footsie.

Deutsche Bank trims rating on SLA

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Deutsche Bank lowered its rating on Standard Life Aberdeen to ‘hold’ yesterday, and slashed its price target on the shares from 405p to 295p. Proactive Investors quoted the analysts as pointing to market and political risks in the UK, including a no-deal Brexit or a more radical UK government, adding that the FTSE 100 group was also “bottom-up headwinds in the form of persistent net outflows from some of its highest-margin funds”.

“Forecast downgrades over the last year have largely been driven by persistent net outflows from equity funds and [Global Absolute Return Strategy], which we believe have accelerated in recent months,” the broker continued, adding, however, that despite the outflows, the group’s dividend “should nonetheless be sustainable” if it sold its stake in its Indian joint venture HDFC Life, which carried a value of £2.6 billion.

Other analysts on FTSE 100 group

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Goldman Sachs reaffirmed Standard Life Aberdeen as a ‘buy’ last month, while trimming their price target on the shares from 345p to 244p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 373.58p.

As of 07:57 GMT, Tuesday, 08 January, Standard Life Plc share price is 364.05p.

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