Analysts at Numis remain bullish on Standard Life Aberdeen (LON:SLA), arguing that the blue-chip asset manager’s stock is ‘materially undervalued,’ Citywire reports. The comments came after the merged group reported last month that its profit had fallen in the first half of the year, while signalling plans to accelerate its share buyback scheme.
Standard Life Aberdeen’s share price fell in the previous session, giving up 0.59 percent to close at 318.40p, outperforming the broader UK market, with the benchmark FTSE 100 index shedding 64.32 points to end the session 0.87 percent lower at 7,318.96. The group’s shares have lost more than 23 percent of their value over the past year, as compared with about a one-percent drop in the Footsie.
Numis remains bullish on SLA
Numis reaffirmed Standard Life Aberdeen as a ‘buy’ yesterday, with a price target of 430p on the shares. Citywire quoted the broker’s analyst David McCann as commenting that the group’s dividend being “more than 800-percent covered by balance sheet resources,” saying this reinforced “our view that a dividend cut is an extremely remote possibility”.
“Thus, with a c.7% yield, we think patient investors buying into the deep value opportunity are paid well to wait,” the analyst further pointed out, adding that the broker reiterated its “view that the market is materially undervaluing Standard Life Aberdeen”.
Other analysts on merged group
Citigroup also reaffirmed the company as a ‘buy’ this week, without specifying a target on the shares, while last week, JPMorgan Chase & Co, which is ‘overweight’ on the stock, lowered its price target from 500p to 425p. According to MarketBeat, Standard Life Aberdeen currently has a consensus ‘buy’ rating and an average price target of 442.50p.
As of 08:17 BST, Friday, 07 September, Standard Life Plc share price is 318.40p.