Shares of the FTSE 250-listed abrdn PLC (GB:ABDN) surged today after the company reported higher inflows, offering a rare break for the struggling asset manager. The company reported £1.2 billion of total net inflows in Q4 2024 compared to outflows of £5.7 billion a year ago. Nonetheless, the company still reported net outflows of £1.1 billion in 2024, reflecting the overall challenges for mid-sized money managers.
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The higher inflows offered relief to investors. Following the announcement, ABDN stock rose more than 3% as of this writing.
abrdn Discloses Key Figures for 2024
abrdn’s AUMA (assets under management and administration) increased by 3% in 2024 to £511 billion. This includes a 1% rise in Q4 driven by positive market conditions and net inflows in investments and its subscription-based platform, Interactive Investor.
Notably, Interactive Investor continues to experience strong growth, with net inflows for FY24 nearly doubling to £5.7bn. Interactive Investor also saw a 17% increase in its AUMA, while its customer base grew by 8% to reach 439k.
In FY24, the company’s adjusted operating expenses were under £1,075m, meeting expectations. The company also expects its 2024 adjusted operating profit to align with current market expectations. Moreover, its annual savings exceeded £100m, bringing it on track to achieve at least £150m in annual savings by the end of 2025.
J.P. Morgan Comments on abrdn’s Update
J.P. Morgan stated that the net inflows exceeded their expectations, driven by stronger flows into cash funds and their retail platform, Interactive Investor.
J.P. Morgan’s analyst Enrico Bolzoni has a Hold rating on ABDN stock.
Are abrdn Shares a Good Buy?
Analysts are taking a cautious approach to the company’s share price outlook, given the ongoing challenges in the industry. As a result, ABDN stock holds a Moderate Sell rating on TipRanks, with four Sell, four Hold, and one Buy recommendation. The price forecast for Abrdn shares is 147.0p, which is nearly in line with the current price.
