Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on STANDARD LIFE PLC. We currently have 16 research reports from 3 professional analysts.
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STANDARD LIFE PLC
STANDARD LIFE PLC
Logical on paper but in practice, we have our doubts.….
22 Mar 17
Having had some time to reflect on the Standard Life/Aberdeen merger (acquisition) we can’t shrug off our initial thoughts. Whilst we can see the strategic logic of the deal we also think that Standard Life is overpaying, would be better off waiting until Aberdeen becomes cheaper and that the Co-CEO management structure is a ‘fudge’ that could come back to haunt it. We drop our recommendation from Buy to Hold ahead of more detailed information and lower our target price from 433p to 364p/share.
Panmure Morning Note 24-02-2017
24 Feb 17
Standard Life has reported a good set of results for 2016 that was ahead of expectations pretty much across the board. IFRS pre-tax Operating profit at £723m (+9%) was ahead of our in line with consensus forecast at £685m. The full year dividend was at 19.82p/share (+8%) ahead of our (& consensus) 19.74p/share forecast driven by cash generation of £502m (+9%). Group AUA at 31 Dec was well ahead of expectations at £357.1bn (31 Dec 2015: £307.4bn) compared to consensus at £335.4bn forecast reflecting market movements and strong net inflows. The performance of GARS during the year was slightly disappointing with £4.3bn of outflows but other SLI products performed well generating £2.7bn of net inflows (2015:£0.8bn). There is a £175m pre-tax provision for the FCA annuity review but as expected the company may well have a £100m recall on its Professional Indemnity insurers. The shares are trading on 2017/18F PE multiples of 12.5x and 11.6x respectively together with a 2017F dividend yield of 5.6% which view as a Buying opportunity.
Panmure Morning Note 11-10-2016
10 Nov 16
Last night Group FD Luke Savage came into our offices to hold a Q&A session with our sales team. It proved to be a very open, enjoyable and informing session where all the ‘difficult’ questions were asked and good straightforward answers were given. For us two key areas of interest, GARS and the dividend proved to be areas where we felt we could take comfort from the answers given. Having concluded that many of the perceived ‘issues’ were not material we believe that the investment case is even stronger than we had previously thought. In our view the shares are undervalued and offer significant upside potential on a 12 month view. Buy.
10 Aug 16
"There was nothing particularly significant from the overnight markets to set the opening trend for London this morning, so investors are instead likely to focus back on yesterday’s report from the National Institute for Economic and Social Research, which reported that the UK economy shrunk by 0.2% in the first full month following Brexit, as political tensions and concerns regarding the UK’s prospective relationship with the EU knocked confidence. This, added to the Bank of England’s reported failure to buy back as many government bonds as it had targeted during the first couple of days of its six-month, £60bn programme, highlights the fact that the process of stimulating risk markets can never be straight forward. London equities accordingly look to be setback at the opening this morning, with the FTSE- 100 seen falling up to 15 points in early trade. Overnight, the US markets saw quiet, low volume activity push all three principal indices modestly into the positive, with the tech-heavy NASDAQ leading the way and closing at a new record high. Yen strength was again the main talking point in Asia as Japan reported June core machinery orders rebounding from previous weakness; while gains of half a percent against the US$ kept the Nikkei under pressure other markets in the region ended mixed with commodity stocks amongst the main losers. This morning the UK will report CML Housing Market Data while the BoE Agents’ Summary of Business Conditions is also due for release. Half-yearly earnings are also due from Centamin (CEY.L), G4S (GFS.L), Interserve (IRV.L), Trafalgar New Homes (TRAF.L) and the Prudential (PRU.L)." - Barry Gibb, Research Analyst
Panmure Morning Note 09-08-2016
09 Aug 16
Standard Life has reported a good set of H1 figures. IFRS pre-tax Operating profit at £341m (+18%) was ahead of our in line with consensus forecast at £315m. The beat is driven largely by a one off benefit linked to the move to Solvency II. The interim dividend was at 6.47p per share (+7%) in line with our 6.48p/share forecast. Group AUA at 30 June was well ahead of expectations at £328bn (31 Dec 2015: £307.4bn) compared to our £320m forecast reflecting market movements towards the period end and positive FX post Brexit. The shares are trading on 2016/17F PE multiples of 11.7x and 10.8x respectively together with a 2016F dividend yield of 6.2% which view as a Buying opportunity.
H1 2016 Results preview
03 Aug 16
Standard Life will report its H1 20165 Results on Tuesday 9th August (same day as L&G) at a slightly earlier time of 6.30am. We are anticipating good underlying performance on a continuing basis with Operating Profit at £315m (+9%) and an interim dividend of 6.48p per share (+7.6%). Trading on 2016/17F PE multiples of only 11.0x and 10.1x respectively and yet delivering a 2016F dividend yield of 6.6%, we view the valuation as a buying opportunity and reiterate our 433p/share target price. Buy, target price 433p.
N+1 Singer - Uncovered Gems - Speed Dating Lunch - A Famous Five for the future?
12 Apr 17
On Friday we hosted our third “speed dating” lunch with the management of five very interesting and contrasting companies not under our formal coverage: Be Heard, Byotrol, Gfinity, Oxehealth and Plant Impact. Each company gave a concise and punchy overview of its business and investment case to a group of fund managers, before rapid fire Q&A. Below we summarise our thoughts on each company with more details inside the note, plus some relevant slides. We believe that all five companies are well-managed and well worth a closer look - we intend to repeat this efficient and popular format for engaging with management teams.
Non Life Insurance - Growing impact of hacks on share prices
18 Apr 17
Our November 2016 Cyber report flagged the growing impact of cyber attacks on quoted companies, noting that Yahoo’s breach would inevitably negatively impact Verizon’s offer price, which it did. A report by CGI and Oxford Economics has found that, to date,severe hacks on UK companies permanently reduced their share price by 1.8% - or approximately a £120m hit to MCap for a FTSE 100 firm. With GDPR coming into effect next year, we expect more headlines. That has got to be good for cyber insurers and cyber security firms.
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
UK Housebuilding Sector: Q1 2017
10 Apr 17
Baron King of Lothbury, also known as Mervyn King former Governor of the Bank of England, is married to Barbara, a Finnish lady. She was his girlfriend in 1970 but distance and steam-driven telecoms conspired to keep them apart. Barbara went on to marry someone else and divorce - before being reunited with King in the late 1990s. They married in 2007 and King, who had never had children, was presented with two step-children and four grandchildren; and, in a Sunday Times interview, he quoted the Finnish apothegm “Grandchildren are the dessert of life”.
Small caps continue to outperform
12 Apr 17
We have seen continued outperformance of smaller company market indices. These indices (refer table 1 below) have at least matched the major indices in the last 12 months and surpassed them in the year to date. Corporate action continues apace. The majority of results have been in line with expectations, with some surprises and setbacks. The outlook is focused upon the current state of the economy with contrasting indications. In Share News & Views we have covered AdEPT Telecom, APC*, Brave Bison*, EU Supply*, Helios Underwriting*, Quarto Group*, Synectics*, Sprue Aegis* and M Winkworth*.