Broker snap: Forecasts raised at Aberdeen Asset

By Benjamin Chiou

Date: Wednesday 04 May 2011

RBS has made upwards revisions to forecasts at Aberdeen Asset Management following a strong first half, which saw “strong progress on just about every operating metric across the business.”

The fund manager beat the broker’s underlying pre-tax profit forecasts by 7%, reporting a figure of £142.8m, while an underlying cash earnings per share (EPS) of 8.9p was 8.5% higher than an estimate of 8.2p.

“Aberdeen saw a meaningful increase in fund flows from the US market and global equity products in the first half of 2011, and we see this trend continuing over the next year,” the broker said.

RBS has upped its EPS forecasts by 5.3% for 2011 and 2012 as a result of the company’s cost guidance (non-staff costs to be flat in second half) and slightly higher management fee margins.

The target price is raised to 275p, from 260p, while a ‘buy’ rating is kept.

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BC

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