UBS has upgraded Aberdeen Asset Management from neutral to buy after the group confirmed it is in talks to buy Scottish Widows Investment Partnership (SWIP).
The bank has upgraded its recommendation and increased its 12-month price target from 404p to 490p in anticipation of the takeover. In a note, UBS said: "Aberdeen would benefit from the addition of an asset manager that diversifies its manufacturing base into UK and European equities, given its current concentration in global, APAC and GEM equities. "We assume an 80% probability of the deal happening and value Aberdeen pro-forma at 500p. We also add 15% to our management fee multiple as this deal would remove the concentration issue we see." UBS expects the deal to be similar in st...
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