Broker snap: Emerging markets concerns overdone at Aberdeen Asset

Date: Monday 28 Mar 2011

Monday’s trading update from Aberdeen Asset Management showed £0.2bn of net inflows in the two months to 28 February, and Peel Hunt continues to see the fund manager as an attractive investment given the favourable trends reported.

“Aberdeen has many of the characteristics we favour in an asset management company – diverse product mix, little reliance on performance fees, rising operating margins and a strengthening balance sheet,” said analyst Stuart Duncan.

Within equities (which contributed net inflows of £1bn in the period), the group saw a record £459m of net inflows into global emerging market (GEM) products.

While the group does expect an inevitable slowdown in GEM capacity, Peel Hunt keeps its ‘buy’ and 270p target price.

Additionally, Evolution Securities keeps its positive stance on the stock, saying that the trading statement counters many of the market’s concerns over its exposure to GEM equities.

“Aberdeen trades in line with the sector but its potential for forecast upgrades and its exposure to attractive asset classes means we maintain an ‘add’,” said analyst Michael Sanderson. Evolution gives a target price of 235p.


BC

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