On Monday, Argus Research adjusted its price target for Ameriprise Financial Inc. (NYSE:AMP (OTC:AMLTF)), increasing it to $460 from the previous $440, while reaffirming a Buy rating for the company's stock.
The firm attributed this decision to Ameriprise's robust revenue performance, which has been buoyed by a combination of net inflows, the integration of experienced advisors, and growth within Ameriprise Bank. These positive factors were somewhat balanced by the volatility in equity and fixed income markets.
Ameriprise Financial recently reported its first-quarter adjusted operating earnings at $8.39 per share, marking an increase from the $7.25 per share recorded in the same period last year.
The company presents its adjusted earnings excluding unlocking to more accurately reflect the ongoing performance of its business operations. Unlocking pertains to the accounting treatment related to deferred acquisition costs, which life insurance companies typically amortize over a predefined schedule.
The research firm anticipates that Ameriprise's long-term growth will be fueled by several strategic initiatives. These include the expansion of its financial advisor network, an uptick in fee-based accounts, enhanced revenue from its asset management division Columbia Threadneedle, and the recent acquisition of the EMEA asset management unit from the Bank of Montreal.
In a move reflecting its financial strength and commitment to shareholder returns, Ameriprise increased its quarterly dividend by 10% in April 2024. The company also continues its practice of capital return to its investors through ongoing share repurchase programs.
InvestingPro Insights
As Ameriprise Financial (NYSE:AMP) continues to demonstrate its financial acumen and shareholder commitment, real-time data and InvestingPro Tips further illuminate the company's position. With a notable market capitalization of $41.73 billion and a strong revenue growth of 13.81% in the last twelve months as of Q1 2024, Ameriprise not only shows robust financial health but also a promising growth trajectory. This is complemented by a P/E ratio of 13.99, which is even more attractive when adjusted for near-term earnings growth, hinting at the company's efficiency in generating profit relative to its share price.
The company's dedication to shareholder returns is evident, not only through its recent dividend increase but also in its impressive track record of raising dividends for 19 consecutive years, a testament to its financial stability and reliability. Moreover, Ameriprise's liquid assets surpass its short-term obligations, which suggests a solid liquidity position. With analysts revising earnings upwards and predicting profitability for the year, along with a high return over the past decade, these insights further solidify the company's robust standing.
To delve deeper into Ameriprise Financial's performance and strategic positioning, readers can access additional InvestingPro Tips, which provide an extensive analysis of the company's financials and market potential. Currently, there are 11 more tips available, offering a comprehensive understanding of AMP's market dynamics. For those looking to enhance their investment strategy, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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