Aberdeen Group Shares (ABDN) Upgraded on Sector Improvements, Tests 200p Resistance

Aberdeen Group shares (LON:ABDN) are moving higher today, up 0.82%, having retested a break of 200p, eyeing up a breakout. ABDN has seen growing bullish sentiment, reflected in a series of analyst upgrades in recent weeks, signalling a potential turnaround for the asset management firm.

RBC Capital Markets analyst Mandeep Jagpal is the latest to upgrade Aberdeen, although the move to ‘Sector Perform' from ‘Underperform' is not exactly bullish. The price target was also significantly raised from 140p to 195p, again mildly lower than current price action.

The revision was primarily based on observed improvements across the company's three key operating segments. The upgrade indicates that RBC Capital Markets now views Aberdeen as likely to perform in line with the broader sector, a notable improvement from its previous assessment.

Prior to RBC's upgrade, J.P. Morgan analysts had already shifted their stance, upgrading Aberdeen to ‘Overweight' from ‘Neutral' on June 10. Their price target was set at 218p, a substantial increase from the previous 164p. J.P. Morgan's rationale centered on the anticipated recovery in adviser platform flows and the continued strength of Interactive Investor, Aberdeen’s direct-to-consumer arm.

Improved customer satisfaction metrics and the upgraded FNZ technology platform were also cited as potential catalysts for stabilizing adviser outflows. The analysts further emphasized the robust performance of Interactive Investor, particularly its success in attracting wealthier clients through its flat-fee model.

The consensus among analysts appears to be shifting towards a more favorable view of Aberdeen. The company's strategic emphasis on enhancing its adviser platform, coupled with the notable success of Interactive Investor, has clearly resonated with the street.

ABDN bulls will be eyeing the 200p level as one to break and hold, with an upside move on heavy volume potentially setting up the shares for a run higher. With 40% gains YTD, and improving sentiment, it may be hard for the bears to slow this one.