Analyst Craig Siegenthaler of Bank of America Securities reiterated a Buy rating on Ameriprise Financial (AMP – Research Report), boosting the price target to $470.00.
Craig Siegenthaler’s rating is based on Ameriprise Financial’s core earnings surpassing expectations, driven by robust market returns and disciplined cost management. Despite headwinds in client cash sorting, net interest income showed modest growth, and Siegenthaler anticipates a positive shift in nominal cash balances by the second half of 2024. Furthermore, while capital return to shareholders decreased slightly, management has signaled their intention to increase deployment towards an 80% target. Alongside these factors, Ameriprise announced a 10% dividend increase, underlining their commitment to shareholder returns.
Ameriprise Financial is embarking on a transformation, focusing on its asset and wealth management segments, which is expected to unlock capital and reduce risk in their business model, thus enhancing growth and return on equity. Siegenthaler notes multiple avenues for Ameriprise to bolster earnings per share in the near term, including client cash transfers, extending the duration of interest-earning assets within its wealth management division, and solid organic growth. These strategic moves could lead to a more favorable stock valuation relative to its peers, supporting Siegenthaler’s Buy rating and a price objective of $470.00.
In another report released on April 11, Jefferies also maintained a Buy rating on the stock with a $487.00 price target.
Based on the recent corporate insider activity of 61 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.
