In a research note published this morning analysts at Peel Hunt have opted to raise their price target on shares of Aberdeen Asset Management significantly, to 350p from 300p previously, while maintaining their buy recommendation.

"Today's statement from Aberdeen covers the two months to August 31st. It reports that assets under management (AuM) rose by 1% over this period to £184.3bn, broadly consistent with our full year expectations," they write.

They add that "driving this increase were positive market movements of £1.7bn and small net outflows of £0.1bn. The strength of the market movements reflects higher equity markets since the end of the last quarter, particularly in Asia and EM markets in general."

Furthermore, they indicate: "We do not expect material change to our September 2012 numbers- we are forecasting 2012 profit before tax/adjusted earnings per share of £334.5m/20.9p, which is broadly in line with consensus. With the underlying momentum remaining strong there is scope for 2013 estimates to start moving up given equity markets continue to rise. This also has the potential to see dividend payments increase faster than the 10p we currently expect in 2012."

"The shares have run up strongly in recent weeks, but we think there is more to go for assuming that 2013 forecasts are likely to move higher given positive market movements."

Shares of Aberdeen Asset Management finished the session down by 0.2% at 308p.

AB

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