Ameriprise Financial (AMP) Stock Forecast & Price Target

Ameriprise Financial demonstrates a robust financial profile with approximately $1.5 trillion in total assets under management and administration as of the end of 2024, signifying its substantial influence in the asset and wealth management industry. The company's strong performance in asset management, underscored by wrap net inflows of +$11 billion—representing an annualized growth rate of about 8%—indicates ongoing success in client engagement and advisor productivity. Additionally, Ameriprise's strategic focus on returning around 80% of its operating earnings to shareholders through dividends and share repurchases, combined with a favorable operating environment characterized by higher interest rates and demographic trends, enhances its positive outlook.

Ameriprise Financial has reported a pre-tax adjusted operating margin of 29.0%, falling short of the estimated 30.5%, alongside a higher-than-expected asset and wealth management general and administrative expense of $438 million compared to the anticipated $423 million. Additionally, the firm experienced a decline in brokerage and asset management operating margins, with estimates projecting a 10% decline in assets under management due to market conditions, as well as a lower-than-expected weighted average fee yield of 4.71% on its A&WM business. Concerns about headwinds from lower short-term rates, potential legacy insurance partner outflows, and adverse claims experiences within the long-term care segment further contribute to a negative outlook on Ameriprise's stock.