Ameriprise Financial (AMP) Stock Forecast & Price Target

Ameriprise Financial has established itself as a leading diversified financial services provider, with approximately 65% of its operating income derived from advice and wealth management, and over $1 trillion in segment assets under management and advisory at year-end 2024. The firm’s asset management franchise, Columbia Threadneedle, adds significant value with $645 billion in assets under management, while the retirement and protection services segment enhances the overall portfolio by offering insurance products to advisory clients. Furthermore, Ameriprise’s commitment to shareholder value is evident as it returns around 80% of its operating earnings through dividends and share repurchases, supported by strong capital efficiency and growth prospects in its core advisory and wealth management business.

Ameriprise Financial reported a decline in total brokerage cash balances by 5% quarter-over-quarter, landing at $37.97 billion, which fell short of prior estimates. Additionally, the net pre-tax adjusted operating margin was recorded at 39.0%, slightly below the estimated 39.9%, accompanied by elevated general and administrative expenses. The firm also anticipates a 10% decline in assets under management due to adverse market conditions, further contributing to a negative outlook for its financial performance.