Abrdn PLC (LSE:ABDN) needs a more radical shake-up than management is currently proposing, according to Deutsche Bank.
To start, Abrdn should consider disposing of the asset management division, said the bank, which might start to realise the significant gap between the market price and the sum-of-the-parts value.
Deutsche Bank added that it was disappointing that the interim results contained no incremental update on group strategy. Moreover, management appeared to endorse the current group structure as being the right one for the group.
“We disagree with this view. However, we also note that management did not rule out more radical action and we note that with the current CEO only being an interim CEO at this time, he likely does not currently have a mandate for more radical, longer-term actions.”
Forthcoming changes in management will be an important potential catalyst for these actions, the bank added.
Deutsche Bank’s target price edges up to 200p from 199p with a ‘buy’ recommendation.
Shares dropped 2% to 155.4p on Wednesday.