Broker snap: Investec pleased with Aberdeen Asset's full-year figures

Date: Monday 05 Dec 2011

Investec has reiterated its buy rating on Aberdeen Asset Management after the asset manager's estimate-beating results released today.

Revenues rose from £638.2m to £784m in the year ended 30 September, £14m ahead of Investec's expectations. Adjusted earnings per share came in at 18.7p, versus the 17.5p forecast.

While assets under management dipped to £169.9bn, with net outflow being £1.7bn, the broker says that this "continues to validate the strong franchise value of the company with continuing sales despite very volatile markets."

"We continue to rate this stock a buy compared to peers due to the stable cost outlook, strong sales network and franchise value which we expect to drive strong gross sales in comparison to peers," said analyst Arun Melmane.

The broker's 194p target price is put under review.

By 09:20 on Monday morning, shares had risen 5.21% to 214p.

BC

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