Goldman upgrades Aberdeen to ‘buy’ from ‘neutral’
Goldman Sachs upgraded Aberdeen on Monday to ‘buy’ from ‘neutral’ as it noted that the recent investor focus has centred disproportionately on the underperforming asset management unit.
The bank said Aberdeen's shares have delivered relatively disappointing returns over the past three years, falling around 12% versus the Stoxx Europe 600 financial services index’s 36% gain.
"Through this period the group has faced significant challenges within its asset management business (the 'Investments' segment), which has had to navigate high-margin outflows and eroding profitability," it said.
"In this context, GS believe the market has been disproportionately focused on the headwinds within this unit and the execution risk surrounding a medium-term turnaround, largely overlooking the value of the high-performing, Interactive Investor business (known as ii), Aberdeen's D2C investment platform."
At 1120 BST, the shares were up 1.8% at 176.80p.