Abrdn PLC (LSE:ABDN) is showing the first glimpses of improvement in its new guise according to Deutsche Bank (NYSE:DB), which has kept its 'buy' rating but raised its price target to 330p.
Recent interims from the life and pensions group that was formerly known as Standard Life Aberdeen were encouraging on three fronts says the bank.
First, the higher-margin business is either doing very well or heading in the right direction with net flows tipped by the broker to reach plus 4% at the start of 2023 against minus 12% in 2019.
Revenues also rose 7% year-on-year, while, thirdly, the expense ratio was under 80% for the first time since 2018.
“Based on this, we now forecast a revenue CAGR of 5.2% (revenue growth) across 2021-2023 and an expense ratio of 75% in the fiscal year 2023.”
Deutsche Bank says while these are still below management targets (mid-to-upper single-digit revenue growth and a 70% expense ratio), the shares look inexpensive on eight-times (8.4) 2022 earnings.
Shares were 260.9p, down 0,8%.