logo-loader
Standard 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: £2.73

Market: LSE
Market Cap: £6.53 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

Watch

Full interview: Kavango Resources 'talking to a number of big players' to...

Kavango Resources PLC's (LON:KAV) Mike Moles tells Proactive London's Andrew Scott is in talks with several larger mining firms about forming a joint venture to develop the Ditau project in Botswana. It comes after drilling analysis suggested the potential presence of rare earth elements...

2 hours, 9 minutes ago

RNS

Holding(s) in Company

1 hour, 27 minutes ago

Form 8.3 - OneSavings Bank plc

2 hours, 55 minutes ago

Holding(s) in Company

4 hours, 3 minutes ago

Transaction in Own Shares

2 days, 21 hours ago

Form 8.3 - OneSavings Bank plc

3 days, 3 hours ago

2 min read