The FTSE 100 Index’s lowest-rated stock continues to defy gravity.
With 12 sell recommendations and no buys, Abrdn Plc is by far the least favored of analysts in the blue-chip gauge, according to data compiled by Bloomberg. The average price target implies about 7% downside over the next 12 months, the most of any benchmark constituent bar miner Antofagasta Plc.
Yet supported by a slew of buybacks, the asset manager’s shares have gained 30% over the past year, ranking among the top 10 in the index. Last year, the company bought back £300 million ($283 million) of shares, and in June it announced plans to repurchase an additional £150 million. Some analysts expect Abrdn to go further when it announces results on Tuesday.
“As with past buyback announcements, we think an announcement could serve as a positive near-term catalyst for Abrdn’s shares,” said UBS Group AG’s Michael Werner, who re-launched coverage of the stock with a sell rating last week. “We would be sellers into any strength.”
Analyst concerns center around a difficult industry backdrop. Abrdn, like fellow money managers, has struggled to stem outflows as higher interest rates have dented the appeal of risky assets. In February, the company reported more withdrawals for the second half of 2022, shrinking assets to a record low.
Last month, the stock lost its only buy rating when Panmure Gordon downgraded to hold. “Many of the easy things for the management team to do have been done, and therefore, where are we, what have we got going on as a story?” said analyst Rae Maile.
Yet, for now at least, share-price gains show few signs of stopping. The Edinburgh-based firm is up 15% this year, outperforming peers such as Schroders Plc, Man Group Plc and M&G Plc, all of whom have risen less than 5%.
--With assistance from James Cone.
