Down 15% This Year, Could Abrdn Shares Be Set For A Comeback?

The financial market is often a rollercoaster of ups and downs, and abrdn (LON: ABDN), a notable FTSE 250-listed company born out of the merger between Standard Life and Aberdeen Asset Management, has certainly experienced its fair share of turbulence.

abrdn's trajectory has been fraught with challenges. Fund overlaps and closures, alongside the loss of a significant mandate from Lloyds, have marred the company's progress. Since the merger in 2017, abrdn's valuation has significantly decreased from £11bn to £2.72bn, and the trend this year has continued, with a 15.5% decline in share price.

Despite its struggles, abrdn reported half-year revenues and profits surpassing analyst expectations. The company revealed a modest 1% increase in adjusted operating profits to £128m, although revenues fell by 7% to £667m. Moreover, the company's profit before tax stood at £187m. These figures suggest that while abrdn faces significant challenges, it still retains elements of resilience in its business model.

In the face of adverse conditions, abrdn's stock continues to present an alluring yield of 9.89%. This high yield is primarily a result of the plummeting share price, with dividends remaining static at 14.6p per share for the last four years. For income investors, this could represent an enticing opportunity, assuming the company maintains its dividend payouts.

Analysts' price targets also remain fairly bullish, when considering the upper mark of 240, and the consensus of 161 against the the current price a shade under 148. The consensus target is almost 10% above the current price action, which in addition to dividends would be a healthy potential return.

However, questions linger about abrdn's future. The persistent decline in the share price is a significant cause for concern and reflects investor skepticism about the company's ability to rebound. Despite this, the high yield continues to hold investor interest, posing the question of whether now might be the right time to invest.

Abrdn shares have twice bounced from lows in the range of 133-134, with the recent climb of 52 week lows of 134.20 amounting to a little over 10%. The road up from here is likely to include bumps along the way, but if the firm can find operational improvements, then the dividend yield and a potential climb could cause a strong amount of buying pressure, in the right conditions.

While abrdn's shares have certainly taken a significant hit, offering a tempting yield to investors, the company's fortunes are not solely in its own hands. Economic conditions, market recoveries, and investor sentiment will continue to play vital roles in determining whether abrdn can successfully turn its fate around and live up to its potential as a possible comeback story.