abrdn PLC

abrdn PLC (LSE: ABDN) is an FTSE 250 listed investment company based in the United Kingdom. It operates through three segments: Investments, Advisor, and Other. The Investments segment encompasses its global asset management business, offering investment solutions to Institutional, Retail Wealth, and Insurance Partners clients. Additionally, the company provides platform services for wealth managers and financial advisers through its UK financial advisory division. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 186.00

• Resistance near Current levels: ABDN’s stock price crossed the Resistance (R2) which was stated in the previous report on 03 March 2025 therefore, there can be a possibility of a decline from resistance levels. Considering the market conditions and the price action, it is prudent to exit the stock.

• Expensive Valuation: The stock of ABDN is currently offered at 12.1x on EV/ EBITDA based relative valuation (NTM) as compared to the industry (Financials) median of 7.0x. On Price/ Book Value based relative valuation (NTM), the stock is valued at 14.5x which is higher than the industry median of 10.9x.

• Macroeconomic Risk: The market sentiments can remain weak in the short term due to the subdued consumer disposable income, geopolitical tensions, and political risks.

Valuation Methodology: Price/ Book Value Based Approach

Share Price Chart  

Conclusion

ABDN is expected to trade at a premium, strong progress on transformation, with improving profitability, higher net inflows, strategic cost savings, and growth across Investments, interactive investor, and Adviser, supported by a clear focus on execution and client outcomes. For conducting the valuation, the following peers have been considered: Rathbones Group PLC (LSE: RAT), Impax Asset Management Group PLC (LSE: IPX), etc.

Given its current trading levels, the recent rally in the share price, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 186.00 as of 04 March 2025, 08:50 AM GMT. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 04 March 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.