Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a699486
The Expert View: Aberdeen Asset Management, UTV, Enquest
by Chris Marshall on Aug 28, 2013 at 05:01
Buy Aberdeen for emerging markets revival
Investors should buy shares in Aberdeen Asset Management (ADN.L), the emerging markets focused fund group, to profit from a recovery in the asset class that has been hard hit by concerns over the end of US stimulus, say analysts at Canaccord Genuity.
Aberdeen shares have been particularly volatile in recent months, mostly amid fears about the impact on emerging markets – many of them dependent on foreign cash flows – of the Federal Reserve’s unwinding of its QE bonanza. The stock is up 32% over the past year, but down 22.8% over the last three months.
The Canaccord analysts highlight several sources of optimism. ‘With regulatory capital requirements now met, investors can expect specials/buyback in 2014.
‘Bolt-on acquisitions could also be an ongoing strategy for EPS accretion'.
‘Current cash generation trends should make the balance sheet heavy in forecast years, highlighting potential upside.’
They conclude: ‘In our view, Aberdeen is best placed to benefit from the return of allocation preference to EM with its superior performance track record and franchise.’
Shares in Aberdeen dropped 3.8% to 352p on Tuesday.
News sponsored by:
Today's top headlines
More about this:
Look up the shares
- Aberdeen Asset Management PLC (ADN.L)
- EnQuest PLC (ENQ.L)
- Revolymer PLC (REVO.L)
- UTV Media PLC (UTV.L)
- BBA Aviation PLC (BBA.L)