Ameriprise Financial (AMP) Stock Forecast & Price Target

Ameriprise Financial operates as a diversified financial services provider, with approximately 65% of its operating income derived from advice and wealth management, and manages over $1 trillion in assets under management and advisory as of year-end 2024. The firm has demonstrated strong performance in its core advice and wealth management business, contributing around 60% to pre-tax operating earnings, with expectations for continued growth driven by enhanced client engagement and advisor productivity. Additionally, Ameriprise shows a robust capital-return strategy, returning around 80% of its operating earnings to shareholders through dividends and share repurchases, supported by a solid excess capital position.

The analysis of Ameriprise Financial reveals a concerning trend in total brokerage cash balances, which saw a decline of 5% quarter-over-quarter to $37.97 billion, underperforming expectations. Additionally, the net pre-tax adjusted operating margin fell to 39.0%, which was below the anticipated 39.9%, alongside higher general and administrative expenses at $364 million, exceeding the estimate of $361 million. Furthermore, forecasts indicate a potential 10% decline in assets under management due to market conditions, which could negatively impact the company's profitability and growth prospects in the near term.