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Investing.com - RBC Capital has reiterated an Outperform rating for Ameriprise Financial (NYSE:AMP) with a price target of $601.00. According to InvestingPro data, analyst targets for AMP range from $434 to $650, with the company showing strong financial health metrics.
The financial services company’s shares have underperformed broader equity markets despite its exposure to markets through its brokerage and asset management businesses, according to RBC Capital.
The firm noted that AMP is trading at what it considers an attractive price-to-earnings multiple of 12.2x based on RBC’s updated 2026 earnings per share estimates.
RBC Capital’s updated model already accounts for modest year-over-year declines in net interest income in 2026, reflecting expectations for a declining interest rate environment.
The firm also referenced management’s previous indication that distribution expense ratios could remain within the 66-67% range in the near term, addressing concerns about competitive pressures in advisor recruiting.
In other recent news, Ameriprise Financial reported its second-quarter 2025 earnings, surpassing analyst expectations with an adjusted earnings per share of $9.11, compared to the forecasted $8.95. The company’s revenue also exceeded projections, reaching $4.37 billion against the anticipated $4.34 billion. RBC Capital raised its price target for Ameriprise Financial to $601 from $595, maintaining an Outperform rating. This adjustment followed the company’s second-quarter results, which RBC Capital noted had "some puts and takes" amid significant volatility due to tariff uncertainty. Meanwhile, BMO Capital initiated coverage on Ameriprise Financial with a Market Perform rating and a price target of $525. The firm highlighted Ameriprise’s disciplined approach to profitability, although it noted increased competition in recruiting and platform investments. These developments reflect the ongoing strategic and financial dynamics surrounding Ameriprise Financial.
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