Broker snap: Recent sell-off at Aberdeen overdone, says UBS

12th Jul 2013 11:04

The recent share price fall at Aberdeen Asset Management over the past month has been overdone, according to UBS, which reiterated its 'buy' rating for the stock on Friday."The market is pricing in outflows in emerging market (EM) equities; while we expect these to have slowed, we note that Aberdeen has not had a single quarter of net outflows in equities since Q1-08," the broker said.UBS has added the stock to its 'most preferred' list, saying that its long-term performance remains strong and institutional clients are "sticky".Elsewhere in the sector, Ashmore has fallen by around 10% over the last month and has de-rated the most among asset managers, UBS said."Although we expect long-term growth in a number of sub investment themes in EM markets, and see valuation as particularly undemanding, we remain 'neutral' and wait for better risk symmetry in the asset class to revisit our investment stance."The broker has also kept a 'neutral' rating for both Man Group and Schroders.Aberdeen was leading the risers in the sector on Friday morning, trading 3.02% higher at 419.7p by 11:15.BC