Ameriprise Financial (AMP) Stock Forecast & Price Target

Ameriprise Financial has established itself as a significant player in the wealth management sector, generating approximately 65% of its operating income from advice and wealth management, with over $1 trillion in assets under management and advisory as of year-end 2024. The firm has also demonstrated a strong performance in its core advice and wealth management business, which accounts for roughly 60% of its pre-tax operating earnings, driven by initiatives that enhance client engagement and advisor productivity. Additionally, Ameriprise is committed to returning approximately 80% of its operating earnings to shareholders through dividends and share repurchases, positioning itself favorably amid rising equity markets and increased client activity.

Ameriprise Financial reported a 5% decline in total brokerage cash balances quarter-over-quarter, reducing them to $37.97 billion, which fell short of the expected $38.7 billion estimate. Additionally, the firm's net pre-tax adjusted operating margin was 39.0%, slightly lower than the anticipated 39.9%, and general and administrative expenses exceeded estimates, totaling $364 million against a forecast of $361 million. Furthermore, projections anticipate a 10% decline in assets under management due to adverse market conditions, contributing to a negative outlook for the company's financial performance.