leadf
logo-loader
viewStandard Life Aberdeen PLC

Standard Life Aberdeen weak as Morgan Stanley downgrades to 'equal-weight' from ‘overweight’

The US investment bank also cut its target price for the FTSE 100-listed asset manager to 255p from 330p, with the shares currently changing hands at 252.60p, down 4.7% on Wednesday’s close

Aberdeen office
The Morgan Stanley analysts concluded that the stock's risk-reward no longer appears attractive

Standard Life Aberdeen PLC (LON:SLA) was weak on Thursday after Morgan Stanley downgraded its rating to 'equal-weight' from ‘overweight’, noting that recent efforts to unlock further shareholder value had failed to drive the stock.

The US investment bank also cut its target price for the FTSE 100-listed asset manager to 255p from 330p, with the shares currently changing hands at 252.60p, down 4.7% on Wednesday’s close.

READ: Standard Life Aberdeen slides as RBC downgrades to ‘Sector Perform’

In a note to clients, Morgan Stanley’s analysts said: “Our Overweight thesis was predicated on free optionality on flow turnaround and potential for management action to unlock value.”

However, they added: “Whilst we believe management has improved shareholder value/returns, e.g. buybacks and debt reduction, this has not driven share price outperformance, as outflows from the core ASI business accelerated through 2H18.

The analysts concluded: “With limited visibility on flow/performance turnaround and potential disposal of listed stakes, and our new FY19-20 forecasts ~20% below consensus (owing to our weaker top-line assumptions), the risk-reward no longer appears attractive.”

Quick facts: Standard Life Aberdeen PLC

Price: 218 GBX

LSE:SLA
Market: LSE
Market Cap: £4.87 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Rock Resources Australasia reveals results of BMV gold project ahead of...

Red Rock Resources' (LON:RRR) Andrew Bell speaks to Proactive about their latest set of results with their partner Power Metal Resources (LON:POW) at their Rock Resources Australasia project. Bell describes the completion of the NI 43-101 report as a 'big milestone' towards the progress of...

2 hours, 9 minutes ago

2 min read