In a report released yesterday, Suneet Kamath from Jefferies maintained a Buy rating on Ameriprise Financial (AMP – Research Report), with a price target of $437.00.
Suneet Kamath has given a Buy rating to Ameriprise Financial’s stock, reflecting several encouraging signs in the company’s performance and future prospects. Kamath highlighted Ameriprise Financial’s solid fourth-quarter earnings, which, despite falling slightly short of expectations, were robust when normalizing for certain one-time factors such as elevated stock compensation and severance costs. The stable quarter-over-quarter core client cash balances underscore the effectiveness of Ameriprise’s financial planning model, suggesting resilience in its client asset base. Additionally, the company’s good leading indicators, including increased third-party client cash and potential benefits from market recovery, signal a positive outlook for future earnings growth.
Furthermore, Ameriprise’s Asset Management segment outperformed expectations with strong performance fees, contributing to higher earnings. The company’s focus on cost management, especially in Asset Management, is expected to support margin improvement in the coming year. The steady recruitment of experienced advisors indicates a commitment to growth and client service. Although capital returns were slightly below Kamath’s estimates, Ameriprise’s capital position remains strong, with a healthy excess capital buffer and a robust year-end Risk-Based Capital ratio. These elements collectively suggest that Ameriprise Financial is well-positioned to deliver shareholder value, reinforcing the Buy rating.
In another report released today, UBS also maintained a Buy rating on the stock with a $445.00 price target.
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Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMP in relation to earlier this year.
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Ameriprise Financial (AMP) Company Description:
Founded in 1894, Minnesota-based Ameriprise Financial, Inc. provides various financial products and services to individual and institutional clients. The company operates through five segments: Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other.
Read More on AMP:
- JPMorgan financial services analysts hold an analyst/industry conference call
- Ameriprise price target raised to $420 from $410 at RBC Capital
- AMP Upcoming Earnings Report: What to Expect?
- Ameriprise price target raised to $394 from $383 at Morgan Stanley
- Ameriprise downgraded to In Line from Outperform at Evercore ISI
