Barclays has trimmed its rating on Standard Life Aberdeen (LON:SLA), arguing that the company continues to face challenges as it seeks to deliver on the objectives of 2017’s merger between Standard Life and Aberdeen Asset Management, Proactive Investors reports. The comments follow the asset manager’s full-year results last month when the company delivered flat profit and announced that it had appointed Keith Skeoch as its sole CEO.
Standard Life Aberdeen’s share price has been steady in London this Friday, having added 0.71 percent to 268.50p as of 12:54 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.28 percent higher at 7,438.79 points. The group’s shares have given up more than 37 percent of their value over the past year, as compared with about a 2.5-percent gain in the Footsie.
Barclays lowers rating on SLA
Barclays trimmed its stance on Standard Life Aberdeen from ‘overweight’ to ‘equal weight’ today, and lowered its valuation on the shares from 338p to 295p. The broker further removed the company as a ‘top pick’.
“While there remains clear potential for the business and a significant amount of value unrealised in its balance sheet, we struggle to see either of these elements being realised in the next 12 months despite the recent management adjustments,” the analysts pointed out, as quoted by Proactive Investors. The broker further reckons that while the successful delivery of potential from strategic options could offer meaningful upside Standard Life Aberdeen’s share price, it remains cautious over the achievement.
Other analysts on blue-chip group
The 15 analysts offering 12-month price targets for Standard Life Aberdeen for the Financial Times have a median target of 319.00p on the shares, with a high estimate of 480.00p and a low estimate of 215.00p. As of April 11, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group has it that the company will outperform the market.