Abrdn Share Price Forecast 2024, 2025, 2026, 2027, 2030 and Dividend Prediction

This post was most recently updated on November 23rd, 2023

Abrdn plc (ABDN) is a global investment company that offers a range of products and services to help clients plan, save and invest for the future. The company was formerly known as Standard Life Aberdeen plc, but rebranded as Abrdn in 2021 after selling the Standard Life name and insurance business to Phoenix Group. Abrdn is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. In this article, we will look at Abrdn Share Price Forecast 2024, 2025, 2026, 2027, 2030.

In this blog post, I will analyze the performance, prospects and risks of Abrdn Stock, using the latest data from 2023 and various sources of information. I will also provide a SWOT analysis and some key things to watch out for.

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Abrdn Share Price Forecast 2024, 2025, 2026, 2027, 2030

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Abrdn Share Price Live Chart and History

As of November 17, 2023, Abrdn Stock has demonstrated a fluctuating performance, with its trading range spanning from 149.75 to 238.00 GBp over the past year. The stock’s closing value on this date was 169.60 GBp, reflecting a decline of 10.94% since the start of the year and a 28.57% decrease from its 52-week peak.

Abrdn’s market capitalization stands at 3.21 billion GBP, complemented by a notable dividend yield of 8.61%, which is based on an annual dividend of 0.15 GBP per share. The stock’s volatility is higher than the market average, as indicated by its beta of 1.5590.

The stock’s daily trading volume averages 10.79 million shares, and it currently has an unlisted price-to-earnings ratio due to a reported net loss of 615 million GBP for the full year 2023.

The table below provides a summary of Abrdn’s key financial metrics over the past five years, derived from the company’s annual reports and forecasts:

• Revenue (in GBP million): Showing a trend of fluctuation, with a slight increase in recent years.
• Adjusted Operating Profit (in GBP million): There has been a noticeable decline in profits over the years.
• Net (Loss)/Profit (in GBP million): The company experienced significant losses in 2023.
• Earnings Per Share (in GBP): These have varied notably, turning negative in 2023.
• Dividend Per Share (in GBP): The dividend per share has remained consistent in recent years.
• Assets Under Management and Administration (AUMA) (in GBP billion): There has been a slight decrease in AUMA over the years.

The analysis of Abrdn Stock reveals that the company is currently grappling with challenges related to growing its revenue and profitability, as well as maintaining its assets under management and administration. Abrdn is actively engaging in a significant transformation phase, which includes rebranding, restructuring, and a strategic review of its multi-asset range.

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Abrdn Share Price Forecast 2024

The 2024 forecast for Abrdn’s share price ranges from a minimum of £2.25 to a maximum of £3.00, with an average target of £2.63.

Abrdn Share Price Forecast 2025

The 2025 forecast for Abrdn’s share price predicts a minimum target of £2.81, a maximum of £3.75, and an average price target of £3.28.

Abrdn Share Price Forecast 2026

The forecast for Abrdn share price in 2026 ranges from a minimum of £3.52 to a maximum of £4.69, with an average target price of £4.10.

Abrdn Share Price Forecast 2030

The projected Abrdn share price for 2030 is expected to range between £8.58 (minimum), £11.44 (maximum), with an average target price of £10.01.

Abrdn Dividend Forecast

Abrdn has consistently maintained its dividend at 0.15 GBP per share for 2022 and 2023, despite reporting a net loss in 2022. The company follows a dividend policy of allocating at least 40% of its adjusted post-tax profits as dividends, considering its capital and liquidity requirements. Additionally, Abrdn offers a Dividend Reinvestment Plan (DRIP) for shareholders.

Analyst forecasts suggest that Abrdn will continue paying a dividend of 0.15 GBP per share in fiscal year 2024, maintaining a dividend yield of 8.61% based on the closing price as of November 17, 2023. The table below shows the predicted dividends for the next three years:

Despite uncertainties in revenue and earnings, Abrdn’s financial stability is evidenced by a solvency ratio of 190%, well above the regulatory requirement. The company has a strong recurring revenue stream, with 70% coming from management and platform fees. It’s important to note that the dividend policy may be revised based on the company’s performance, capital needs, and market conditions.

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Growth Opportunity for Abrdn

Abrdn has a growth opportunity to leverage its strengths and capabilities to serve a wider range of clients and markets and to benefit from the long-term trends in the investment industry. Some of the key areas of growth opportunity for Abrdn are:

1. Emerging Markets: Abrdn manages 65.9 billion GBP in emerging markets, accounting for 12% of its total AUM as of June 30, 2023. With a diverse product range and a global investment team, Abrdn is well-equipped to capture growth in these markets, driven by consumer demand, technology, and infrastructure development post-pandemic.
2. Innovation and Technology: The company is focusing on innovation-driven products and services, exemplified by its global innovation equity fund targeting sectors such as AI, biotechnology, clean energy, e-commerce, and fintech. Abrdn’s digital and data initiatives are also enhancing client experience and operational efficiency.
3. Sustainability and ESG: Abrdn is committed to sustainable investing, integrating ESG factors into its investment strategies. As a signatory of the UN Principles for Responsible Investment with an A+ rating, the company offers products like the Abrdn Sustainable Leaders Fund and the Abrdn Climate Transition Fund, and is actively working towards reducing its carbon footprint and enhancing diversity and inclusion.

These strategies position Abrdn to leverage global investment trends and expand its market presence.

Competitors of Abrdn Stock

Abrdn Stock faces competition from various companies that operate in the same or similar segments of the investment industry, such as asset management, wealth management, and platform services. Some of the main competitors of Abrdn Stock are:

1. BlackRock, Inc. (BLK): The world’s largest asset manager, with 9.49 trillion USD in assets under management as of September 30, 2023. BlackRock offers a diverse range of products and services, including Aladdin technology solutions, iShares, and BlackRock Solutions. Listed on the New York Stock Exchange and part of the S&P 500 Index, BlackRock has a market capitalization of 95.97 billion USD and a dividend yield of 1.86% as of November 17, 2023.
2. UBS Group AG (UBSG): A leading global financial services firm, UBS operates across global wealth management, personal and corporate banking, asset management, and investment banking. As of September 30, 2023, UBS managed 4.1 trillion CHF in invested assets, including 3.2 trillion CHF from wealth management clients. The company is listed on the SIX Swiss Exchange and the New York Stock Exchange, with a market capitalization of 51.26 billion CHF and a dividend yield of 2.64% as of November 17, 2023.
3. Schroders plc (SDR): A global asset and wealth management company with 700.4 billion GBP in assets under management and administration as of September 30, 2023. Schroders offers a wide range of products and services tailored for private clients, intermediaries, and institutions. It is listed on the London Stock Exchange, a constituent of the FTSE 100 Index, and has a market capitalization of 8.76 billion GBP and a dividend yield of 3.18% as of November 17, 2023.
4. Hargreaves Lansdown plc (HL): The UK’s largest investment platform, managing 143.4 billion GBP in assets under administration and serving 1.7 million active clients as of June 30, 2023. Hargreaves Lansdown offers a variety of investment products and services, including funds, shares, pensions, and financial advice. The company is listed on the London Stock Exchange, part of the FTSE 100 Index, with a market capitalization of 7.32 billion GBP and a dividend yield of 3.11% as of November 17, 2023.

These companies represent the competitive landscape for Abrdn Stock in the asset management, wealth management, and platform services sectors.

Strengths of Abrdn Stock

Abrdn Stock has some strengths that give it an edge over its competitors and enable it to create value for its shareholders. Some of the strengths of Abrdn Stock are:

1. Brand and Reputation: Abrdn has a strong brand and reputation in the investment industry, with a history spanning over 190 years and a diverse client base in over 80 countries. The company has received numerous industry awards, highlighting its credibility and recognition.
2. Scale and Diversification: With 532.7 billion GBP in assets under management as of June 30, 2023, Abrdn demonstrates significant scale and diversification across asset classes and geographies. It has a stable revenue base, with 70% coming from recurring sources, and a vast distribution network, including partnerships with major financial institutions.
3. Innovation and Technology: Abrdn is focused on innovation, offering products and services related to key growth areas like AI, biotechnology, and clean energy. The company has invested in digital and data strategies, including a new client portal, a data lake, and a cloud platform, to enhance client experience and operational efficiency.

Weaknesses of Abrdn Stock

Abrdn Stock also has some weaknesses that limit its performance and growth potential and expose it to risks and threats. Some of the weaknesses of Abrdn Stock are:

1. Revenue and Profitability Decline: Abrdn has seen a reduction in both revenue and profitability in recent years. From 2019 to 2021, revenue fell by 9.4%, and adjusted operating profit decreased by 44.7%. Additionally, the company reported a net loss of 615 million GBP in 2023, mainly due to impairment charges and goodwill write-downs. Its assets under management also declined by 2.2% from 2019 to 2021 and 0.4% in the first half of 2023.
2. Investment Performance and Client Outflows: The company has struggled with investment performance, with only a minority of its funds outperforming benchmarks over three and five-year periods as of June 30, 2023. This has led to significant client outflows, totaling 25.6 billion GBP in 2021 and 7.5 billion GBP in the first half of 2023, particularly from its multi-asset and equity funds.
3. Transformation and Integration Challenges: Abrdn is undergoing a significant transformation, including rebranding and restructuring. This process poses risks such as execution delays, cost overruns, operational disruptions, client attrition, and employee turnover. Additionally, effectively establishing the new brand identity and value proposition remains a challenge.

These weaknesses highlight the challenges Abrdn faces in maintaining its market position and growth potential

SWOT Analysis of Abrdn Stock

Here is a SWOT Analysis of Abrdn Stock:

Strengths:

1. Brand and Reputation: Abrdn’s established brand and reputation in the investment industry are significant assets.
2. Scale and Diversification: The company has a large-scale operation with extensive diversification across various asset classes and geographies.
3. Innovation and Technology: Abrdn’s focus on innovation and technology positions it well for future growth and adapting to industry changes.

Weaknesses:

1. Revenue and Profitability Decline: Recent years have seen a downturn in Abrdn’s revenue and profitability.
2. Investment Performance and Outflows: The company has faced challenges with investment performance, leading to substantial client fund outflows.
3. Transformation and Integration Challenges: Ongoing transformation efforts, including rebranding and restructuring, pose risks of execution delays and other operational challenges.

Opportunities:

1. Emerging Markets: Abrdn has the potential to expand and capitalize on opportunities in emerging markets.
2. Innovation and Technology: The company can leverage its focus on innovation and technology to create new products and services.
3. Sustainability and ESG: With growing interest in sustainable and responsible investing, Abrdn can benefit from its commitment to ESG principles.

Threats:

1. Competition and Consolidation: The investment industry is highly competitive, with ongoing consolidation posing a threat.
2. Regulation and Compliance: Increasing regulatory pressures and compliance requirements could impact operations.
3. Market Volatility and Uncertainty: Fluctuations in financial markets and economic uncertainty can pose risks to investment performance and client retention.

This SWOT analysis highlights the multifaceted nature of Abrdn’s business environment, encompassing both internal factors and external market conditions.

Abrdn Company Financials

Abrdn Company Financials are the financial statements and ratios that show the financial performance, position, and condition of the company. The financial statements include the income statement, the balance sheet, and the cash flow statement. The financial ratios include the profitability, liquidity, solvency, and efficiency ratios.

The table below shows some of the key financials of Abrdn for the past five years, based on the company’s annual reports and forecasts .

Source: Abrdn Annual Reports and Forecasts

The Abrdn Company Financials show that the company has been facing some challenges in growing its revenue and profitability, as well as retaining its assets under management and administration. The company has also been undergoing a major transformation, including a rebranding, a restructuring, and a strategic review of its multi-asset range.

The company has a strong financial position, with a solvency ratio of 190% as of June 30, 2023, well above the regulatory requirement of 100%. The company also has a diversified and resilient revenue stream, with 70% of its net operating revenue coming from recurring sources, such as management fees and platform fees.

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Risks in the Future for Abrdn

Abrdn faces some risks in the future that may affect its performance and growth potential and require it to adapt and respond to changing market conditions and client expectations. Some of the main risks in the future for Abrdn are:

1. Competition and Consolidation: The investment industry is highly competitive, with challenges from both established and new entrants. Abrdn risks losing market share, revenue, and clients to competitors offering superior products, services, lower fees, or more innovative solutions. Industry consolidation, where larger firms merge with or acquire smaller ones, could create more formidable competitors with economies of scale and enhanced competitive advantages.
2. Regulation and Compliance: Abrdn must navigate complex regulatory landscapes across various jurisdictions, including the UK, EU, US, and Asia. Changing or divergent regulatory frameworks, such as Brexit impacts, MiFID II, GDPR, Dodd-Frank Act, and evolving ESG regulations, may lead to increased operational costs and complexities. Non-compliance risks could result in fines, penalties, or reputational damage, further impacting the company’s standing.
3. Market Volatility and Uncertainty: The company’s revenue, profitability, and assets under management are susceptible to market volatility and economic uncertainties. Factors like interest rate fluctuations, exchange rate changes, inflation, economic growth, political stability, and ongoing effects of the COVID-19 pandemic can significantly influence its financial performance. Additionally, shifts in client risk appetite, preferences, or behaviors could lead to fund outflows. Market downturns or adverse events could also result in investment losses or asset impairments.

These risks require Abrdn to continually adapt and respond proactively to maintain its market position and meet evolving client expectations.

Key Things to Watch Out for Abrdn Stock

As Abrdn navigates through a significant phase of transformation and growth, there are several critical areas to monitor:

1. Transformation and Integration Progress: The success of Abrdn’s ongoing transformation, including rebranding and restructuring efforts, is crucial. Tracking the impact of these changes on the company’s revenue, profitability, and assets under management will be essential to gauge the effectiveness of these strategies.
2. Investment Performance and Client Retention: The consistency and quality of investment performance are key factors in retaining existing clients and attracting new funds. Monitoring how well Abrdn’s investment strategies perform against benchmarks and competitors will be crucial.
3. New Product Development and Launch: Abrdn’s initiatives in emerging markets, innovation and technology, and sustainability and ESG are pivotal. The development and successful launch of new products and services in these areas could be a significant growth driver.
4. Regulatory Compliance and Adaptation: Keeping an eye on how Abrdn responds to evolving regulatory and compliance frameworks across different jurisdictions is important. Ensuring compliance with regulations and meeting the expectations of regulators, clients, and stakeholders will be critical for maintaining the company’s reputation and operational integrity.
5. Market Volatility Management: Observing how Abrdn manages and mitigates the effects of market volatility and economic uncertainty will be key. The company’s ability to diversify its revenue streams and investment portfolio will play a significant role in its resilience and long-term success.

Final Thoughts on Abrdn Share Price Forecast 2024, 2025, 2026, 2027, 2030

Abrdn Stock symbolizes a major player in the global investment landscape, offering an extensive range of products and services designed for future financial planning, saving, and investment. As of November 17, 2023, the stock has experienced fluctuations, trading between 149.75 and 238.00 GBp over the past year, and closing at 169.60 GBp on that date.

This represents a 10.94% decline year-to-date and a 28.57% drop from its 52-week high. With a market capitalization of 3.21 billion GBP and an appealing dividend yield of 8.61% based on an annual dividend of 0.15 GBP per share, the stock presents a notable investment option.

Abrdn Stock’s strengths lie in its well-established brand and reputation, its considerable scale and diversification, and its focus on innovation and technology. It also has significant growth opportunities in emerging markets, innovative technologies, and sustainability and ESG initiatives.

However, challenges such as declining revenue and profitability, subpar investment performance, and ongoing transformation and integration pose risks to its stability and growth. Additionally, the stock is susceptible to future risks including intense competition, regulatory changes, and market volatility.

This stock is an attractive choice for investors seeking high dividend yields, a diversified and robust revenue stream, and exposure to long-term investment industry trends. Nevertheless, it also carries risks associated with market volatility, regulatory changes, and challenges in execution and integration.

Investors interested in Abrdn Stock should monitor its performance and progress closely, carefully assessing its valuation, potential, and associated risks to make informed investment decisions.

FAQs on Abrdn Share Price Forecast 2024, 2025, 2026, 2027, 2030

What is the Abrdn Share Price Forecast 2024?

In 2024, Abrdn’s share price is anticipated to vary between a low of £2.25 and a high of £3.00, with an average target price of £2.63.

What is the Abrdn Share Price Forecast 2025?

In 2025, the projected Abrdn share price forecast encompasses a minimum target of £2.81, a maximum of £3.75, and an average price target of £3.28.

What is the Abrdn Share Price Forecast 2026?

The Abrdn share price is predicted to fluctuate between £3.52 (minimum) and £4.69 (maximum) in the year 2026, with an average target price of £4.10.

What is the Abrdn Share Price Forecast 2030?

The anticipated Abrdn share price for the year 2030 is estimated to fall within the range of £8.58 (minimum) to £11.44 (maximum), with an average target price of £10.01.