Numis reckons that investors are ‘well paid’ to wait for future catalysts at Standard Life Aberdeen (LON:SLA), Citywire reports. The comments come ahead of the blue-chip group’s annual general meeting on May 14.
Standard Life Aberdeen’s share price fell in the previous session, giving up 1.97 percent to close at 273.30p, marginally underperforming the broader market selloff which saw the benchmark FTSE 100 index close 1.63 percent lower at 7,260.47 points. The group’s shares have lost a little more than a third of their value over the past year, as compared with about a four-percent dip in the Footsie.
Numis bullish on SLA
Numis reaffirmed Standard Life Aberdeen as a ‘buy’ yesterday, with a valuation of 319p on the shares. Citywire quoted the broker’s analyst David McCann as commenting that there are “future catalysts, including further disposals and non-operating assets, the ongoing efficiency program, greater focus on the growth and potentially high value platform business, and possible long-term operating business recovery”.
The analyst reckons that in the meantime, SLA’s “investors remain well paid to wait from the c.7.7% yield, especially in light of the […] intention to pay a flat dividend per share over the next two-to-three year transition period, with growth hoped for thereafter if earnings per share recovers”.
Earlier this year, the FTSE 100 company delivered flat full-year profit, while leaving its dividend unchanged, planning to maintain the payout to shareholders at the 2018 level during its period of transformation.
Other analysts on group
The 15 analysts offering 12-month targets for the Standard Life Aberdeen share price for the Financial Times have a median target of 319.00p, with a high estimate of 480.00p and a low estimate of 215.00p. As of May 7, the consensus forecast amongst 17 polled investment analysts covering the blue-chip group has it that the company will outperform the market.