Ameriprise Financial (AMP) Stock Forecast & Price Target

Ameriprise Financial has demonstrated solid performance as a diversified financial services provider, with approximately 65% of its operating income derived from advice and wealth management, supported by over $1 trillion in segment assets under management as of year-end 2024. The company's asset management division, Columbia Threadneedle, manages $645 billion, contributing to a total of $1.5 trillion in assets under management and advisory across all segments. Additionally, Ameriprise's commitment to returning around 80% of its operating earnings to shareholders via dividends and share repurchases, alongside its effective expense management strategies and growth initiatives, underscores a positive outlook for the firm.

Ameriprise Financial experienced a 5% quarter-over-quarter decline in total brokerage cash balances, amounting to approximately $37.97 billion, which fell short of expectations. Additionally, the company's net pre-tax adjusted operating margin decreased to 39.0%, slightly below the estimated 39.9%, indicating rising general and administrative expenses that exceeded projections. Furthermore, assumptions of a potential 10% decline in assets under management due to market downturns, along with the anticipated brokerage and asset management operating margins of 20% and 19% respectively, highlight significant challenges that may negatively impact future profitability.