RBC lowers target price on Standard Life Aberdeen
By Iain Gilbert
Date: Monday 19 Aug 2019
(Sharecast News) - Analysts at RBC Capital Markets slightly trimmed their target price for shares of insurer Standard Life Aberdeen from 210.0p to 205.0p on Monday, noting that institutional net flows tended to be driven by the firm\'s three-year track record, which remains weak.
RBC said Standard Life\'s one-year performance was improving, with 79% of the group\'s assets under management coming in ahead of its benchmark over the past year, but noted that over the latest three-year period just 20% was performing at pace.
The Canadian broker, which also reiterated its \'underperform\' rating on the stock, increased its estimate for annual net outflows to £16.5bn from £10.4bn, stating the group had failed to stem outflows despite \"another solid month\" in July.
RBC also highlighted that its performance tracking differed to the performance statistic that forms one of Standard Life\'s key performance indicators and remuneration inputs, saying that although SLA picks up all asset classes including multi-asset, fixed income, cash, property and quant, it only tracks equities.
\"The change in net outflows, market movements and including H1 2019 results act to reduce our EPS by 3%, 8% and 9% for 2019E, 2020E and 2021E, respectively. We are below consensus by 4%, 7% and 11% for 2019E, 2020E and 2021E, respectively,\" said RBC.
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