On Wednesday, Morgan Stanley (NYSE:MS) adjusted its outlook on Ameriprise Financial (NYSE: NYSE:AMP (OTC:AMLTF)), increasing the price target to $509.00 from the previous target of $502.00. The firm maintained an Equalweight rating on the company's stock. The adjustment follows Ameriprise Financial's third-quarter 2024 earnings, which led to a revision of future earnings per share (EPS) estimates.
The analyst noted a decrease in the fourth-quarter 2024 adjusted EPS by 7 cents, a 0.8% reduction, setting the new estimate at $9.66. This change is attributed to a higher expected tax rate. Furthermore, the 2025 EPS forecast was slightly lowered by 0.2% to $39.58, factoring in anticipated elevated expenses.
Conversely, the 2026 EPS projection was raised by 1.3% to $42.42, based on the anticipation of better adjusted net revenues. The price target increase of $7, which represents a 1.4% rise, reflects these revised expectations while the analyst's stance remains at Equalweight for Ameriprise Financial's stock.
The update from Morgan Stanley provides investors with a revised performance outlook for Ameriprise Financial in the coming years. The adjustments to the EPS estimates and the price target are based on the company's latest financial results and expected future financial performance.
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