JPMorgan ups Aberdeen to 'overweight', places shares on 'positive catalyst watch'
JPMorgan Cazenove upgraded Aberdeen on Tuesday to 'overweight' from 'neutral' and placed the stock on 'positive catalyst watch' ahead of results, sending shares in the asset manager surging.
The bank said its analysis suggests that flows in the Adviser vector might soon turn positive thanks to a new competitive pricing structure and improving customer satisfaction.
"Furthermore, we expect that the strong momentum recorded by interactive investor (ii) in recent quarters will accelerate further, and that the platform will continue to win market share thanks to its best-in-class pricing and compelling offering," JPM said.
It said that stronger customer growth and growing SIPP penetration could also increase cash balances on the platform and drive an increase in treasury income and earnings per share.
"Our analysis suggests that these tailwinds are imminent, and we place the stock on positive catalyst watch ahead of the 1H results (30th July)," it said.
JPM said it is 2%/9% above Bloomberg EPS consensus for FY26/27 and it also sees scope for an expansion in multiple as these tailwinds unfold.
At 1005 BST, the shares were up 7.1% at 197.20p.
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