Canaccord raises Aberdeen price target on SWIP deal

Analysts at Canaccord Genuity have raised their price target for Aberdeen Asset Management by more than 10% following its deal to buy Scottish Widows Investment Partnership (SWIP).

The broker has upped its target price on Aberdeen's shares to 586p from 520p, confident that the SWIP business will add much-needed diversification for the emerging markets-focused fund group. Aberdeen's formation of a strategic partnership with SWIP's former owner Lloyds  could help it raise further assets, the broker added. Canaccord analyst Arun Melmane said: "We attribute the value of the SWIP deal to the longer-term relationship with Lloyds, which should serve as a conduit for asset gathering. "The focus of Aberdeen's management team on asset gathering is likely to prove benef...