Ameriprise Financial (AMP) Stock Forecast & Price Target

Ameriprise Financial has established itself as a significant player in the wealth management sector, generating approximately 65% of its operating income from advice and wealth management, with over $1 trillion in assets under management by year-end 2024. The company's strong asset management franchise, Columbia Threadneedle, managed $645 billion in assets at the same time, contributing to a total of $1.5 trillion in assets under management and advisory across all segments. Additionally, Ameriprise has demonstrated solid performance in its core A&WM business, which accounts for around 60% of pre-tax operating earnings, while also maintaining a capital-return strategy that sees approximately 80% of operating earnings returned to shareholders.

Ameriprise Financial experienced a decline in total brokerage cash balances, dropping by 5% quarter-over-quarter to $37.97 billion, which was below the expected estimate of $38.7 billion. The net pre-tax adjusted operating margin also fell to 39.0%, slightly lower than the anticipated 39.9%, while general and administrative expenses were higher than forecasted at $364 million compared to the estimate of $361 million. Additionally, assumptions of a 10% decline in assets under management due to market downturns, coupled with projected margins for brokerage and asset management segments at 20% and 19%, respectively, contribute to a negative outlook for the company's stock.