Citi upgrades Aberdeen to 'buy' from 'neutral'

(Sharecast News) - Citi upgraded Aberdeen on Friday to 'buy' from 'neutral/high risk' as it said there was "still lots to play for". Citi noted the shares have risen by around 10% over the last month, outperforming the majority of traditional asset managers.

"Despite this, we see plenty of upside for investors to play for, with up to circa 20% upside to consensus estimates (with upside, as we have not fully baked in recent positive markets), significant re-rating potential, particularly of the Investments and ii businesses, and attractive optionality," it said.

Citi said that on its revised numbers, Aberdeen shares trade on 12x FY27E headline price-to-earnings or 8.5x excluding surplus capital and listed stakes, which it estimates implies 'only' 12.5x for the Adviser and fast-growing ii businesses, which looks reasonable.

At 0905 BST, the shares were up 1.8% at 230.0p.