Ameriprise Financial (AMP) Stock Forecast & Price Target

Ameriprise Financial is positioned favorably within the asset and wealth management industry, boasting approximately $1.5 trillion in total assets under management and administration as of the end of 2024, with around 10,500 advisors in its expansive network. The company's core asset and wealth management segment, which represents about 80% of its revenue, has shown impressive performance, particularly with wrap net inflows of $11 billion for the quarter, indicating an 8% annualized organic growth rate. Furthermore, Ameriprise demonstrates a robust capital-return strategy, returning approximately 80% of operating earnings to shareholders while maintaining a strong excess capital position, which supports investor confidence and potential growth initiatives.

Ameriprise Financial reported a pre-tax adjusted operating margin of 29.0%, falling short of the anticipated 30.5%, while the general and administrative expenses for Asset and Wealth Management (A&WM) came in at $438 million, exceeding estimates of $423 million. The overall earnings power appears weaker than expected, especially within the Advice & Wealth Management segment, which constitutes approximately two-thirds of the company's pre-tax earnings for 2024. Additionally, ongoing concerns regarding lower net investment income and the potential for legacy insurance outflows may further strain the firm's financial performance, dampening its outlook in the asset and wealth management sector.