Ameriprise Financial (AMP) Stock Forecast & Price Target

Ameriprise Financial's diversified service model generates approximately 65% of its operating income from advice and wealth management, supported by over $1 trillion in assets under management and advisory, along with around 10,000 affiliated advisors. The asset management segment, Columbia Threadneedle, contributed significantly with $645 billion in assets at year-end 2024, while the firm's total assets across all segments reached $1.5 trillion after eliminations. Additionally, the company effectively returns about 80% of its operating earnings to shareholders through share repurchases and dividends, which, combined with strong performance metrics and improving advisor productivity, underscores a positive outlook for Ameriprise's financial health and growth potential.

Ameriprise Financial experienced a 5% quarter-over-quarter decline in total brokerage cash balances, which fell to $37.97 billion, indicating weaker liquidity than anticipated. The firm's net pre-tax adjusted operating margin of 39.0% was also below expectations, reflecting a slight increase in general and administrative expenses to $364 million compared to estimates. Furthermore, assumptions of a 10% decline in assets under management due to market declines, along with lower expected margins in brokerage and asset management, contribute to a cautious outlook on the company's financial performance.