JP Morgan has taken a more positive view on Aberdeen Group PLC (LSE:ABDN) ahead of its half-year results, rating the shares 'overweight' and adding the group to its positive catalyst watch list.
The bank says it expects to see a clear improvement in flows, particularly within Aberdeen’s Adviser channel, which has previously been a key source of funds leaving the business.
Its analysts point out that much of Aberdeen’s recent outflows have been driven by financial advisers, rather than end customers, as advisers chose to move client assets elsewhere.
However, the bank believes that advisers are generally reluctant to shift client money unless absolutely necessary, given the hassle involved.
JPM argues that Aberdeen’s recent price cuts, alongside an upgrade to its customer service, could meaningfully reduce the amount of money leaving the platform.
The bank reckons these changes set the stage for a material improvement in net flows and sees this as a potential catalyst for the shares in the months ahead.
The shares were up 1.3% at 201.36p.