Evercore ISI has revised its price target for Ameriprise Financial (AMP, Financial), adjusting it downward from $602 to $562. The investment firm maintains an 'In Line' rating on Ameriprise shares despite the adjustment.
The change in pricing outlook comes in the wake of Ameriprise's first-quarter results and subsequent earnings call. Based on the company's performance, Evercore ISI has lowered its forward financial estimates by 8% for the remainder of 2025 and anticipates a 6%-7% reduction for 2026.
These revisions reflect the firm's reassessment of Ameriprise's financial trajectory over the next couple of years, prompting the updated analysis.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Ameriprise Financial Inc (AMP, Financial) is $536.20 with a high estimate of $602.00 and a low estimate of $428.00. The average target implies an upside of 12.90% from the current price of $474.94. More detailed estimate data can be found on the Ameriprise Financial Inc (AMP) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Ameriprise Financial Inc's (AMP, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ameriprise Financial Inc (AMP, Financial) in one year is $476.46, suggesting a upside of 0.32% from the current price of $474.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ameriprise Financial Inc (AMP) Summary page.
AMP Key Business Developments
Release Date: January 30, 2025
- Total Revenue: $4.5 billion, up 13%.
- Earnings: $965 million, up 18%.
- Earnings Per Diluted Share: $9.54, up 23%.
- Return on Equity (ROE): 52.7%, up from 49.7% a year ago.
- Assets Under Management, Administration, and Advisement: $1.5 trillion, up 10%.
- Total Client Assets: $1 trillion, up 14%.
- Total Client Inflows: $11.3 billion.
- Wrap Assets Under Management: $574 billion, up 18%.
- Wrap Flows: $11 billion, up 59%.
- Transactional Activity: Up 17% from a year ago.
- Adviser Productivity: Up 13% to over $1 million per adviser.
- Bank Balances: Over $23 billion.
- Variable Annuity Sales: Up 15% for the quarter.
- Life and Health Sales: Up 26%.
- Net Inflows in Asset Management: $1.3 billion.
- Retail Net Inflows: $6.1 billion.
- Institutional Net Outflows: $3.9 billion.
- Free Cash Flow Generation: 90%.
- Capital Returned to Shareholders: $768 million for the quarter, $2.8 billion for the year.
- Share Count Reduction: 22% over the last five years.
- Adjusted Operating Margin: 27%.
- Adjusted Operating Net Revenues in Wealth Management: $2.8 billion, up 18%.
- Adjusted Operating Earnings in Wealth Management: $823 million, up 18%.
- Adjusted Operating Earnings in Asset Management: $251 million, up 29%.
- Adjusted Operating Earnings in Retirement & Protection Solutions: $213 million, up 5%.
- Protection Sales: Up 26% to $91 million.
- Variable Annuity Sales: $1.2 billion, up 15%.
- Excess Capital: $2 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ameriprise Financial Inc (AMP, Financial) achieved a record high return on equity of 52.7%, up from 49.7% a year ago.
- Total revenues increased by 13% to $4.5 billion, driven by strong asset growth and transactional activity.
- Client assets grew to $1 trillion, marking a 14% increase, with wrap assets under management up 18% to $574 billion.
- The company attracted 91 experienced productive advisers in the fourth quarter, enhancing its recruiting efforts.
- Ameriprise Financial Inc (AMP) returned $768 million to shareholders in the quarter and $2.8 billion for the year, demonstrating strong capital return strategy.
Negative Points
- Net interest income (NII) at the bank was down sequentially and year-over-year, raising concerns about future performance.
- Institutional net outflows of $3.9 billion were reported, reflecting challenges in the institutional segment.
- The market for acquisitions is currently considered pricey, limiting Ameriprise Financial Inc (AMP)'s ability to pursue inorganic growth opportunities.
- The Asset Management business is under pressure, with a need to transform and become more efficient to improve flow rates.
- Corporate expenses, including severance and technology transformation costs, are expected to impact the first half of 2025.
