Abrdn PLC (LSE:ABDN) saw its shares retreat in afternoon trading on Wednesday after analysts at Deutsche Bank cut its rating to 'Sell' from 'Hold'.
The analysts also reduced their target price for the fund manager to 135p from 175p.
In a note to clients, the Deutsche Bank analysts said: "A more cautious stance on several fronts. We have been cautious on abrdn's earnings for a while, as evidenced by our sell catalyst call in June. Since then, we've reflected further on the numbers and see further downside risk to the shares from both an earnings and capital perspective."
"On the latter, we now push through a 25% cut to the DPS beginning with the 2022 final. Additionally, we also value the excess capital locked within the Indian stakes at a 5% larger discount to reflect concerns around the uses of sale proceeds," the analysts concluded.
In afternoon trading on Wednesday, Abrdn shares were 4% lower at 143.25p.