Abrdn PLC (LSE:ABDN) has been downgraded to a hold, with core growth expected to remain slow, according to Berenberg.
The broker’s target price has also been reduced slightly to 260p from 285p.
The broker believes investors in the company will remain sceptical over the growth of its core investment business, despite encouraging signs over its long-term growth following the £1.5bn acquisition of interactive investor last year.
Berenberg also noted the investment company is underexposed to exchange-traded funds (ETFs), increasing its risk from an outflow from active funds.
It cites that a large buyback from the company would re-install some investor faith, however, Berenberg believes the company will prioritise further acquisitions.
On the plus side, cyclical trends are improving within the industry, with investment performance improving following its merger with Standard Life in 2017 and roughly 65% of its assets under management are now outperforming in both the short and medium term predictions.