Ameriprise Financial target cut to $550 by Argus, retains buy rating

On Tuesday, Argus analysts adjusted their outlook on Ameriprise Financial Inc. (NYSE: NYSE:AMP (OTC:AMLTF)), reducing the price target from $582.00 to $550.00, yet reaffirming a Buy rating on the company’s stock. The revision reflects caution amid anticipated revenue declines in the second quarter of 2025 due to broader economic uncertainties and a projected slowdown in the growth of its Advice & Wealth Management segment.

Ameriprise Financial has demonstrated robust revenue performance in recent quarters. In the first quarter of 2025, the company reported adjusted operating earnings of $9.50 per share, a significant increase from the $7.20 per share recorded in the same period the previous year. The company’s financial health score on InvestingPro is rated as "GREAT," with particularly strong profitability metrics and a healthy current ratio of 2.91x. Despite this, the revised price target by Argus suggests tempered expectations moving forward.

The firm’s analysts anticipate that Ameriprise’s long-term growth will be fueled by several factors. These include the expansion of its financial adviser network, a rise in fee-based accounts, and higher revenues from its asset management division, Columbia Threadneedle, as well as from its EMEA asset management unit.

In a move signaling confidence in its financial position, Ameriprise raised its quarterly dividend by 8% in April 2025. This increase is part of the company’s ongoing efforts to enhance shareholder value through regular capital returns, which also include share repurchases.

The updated price target by Argus indicates a belief in Ameriprise Financial’s capacity for sustained growth despite the expected near-term challenges. The firm’s analysts seem to underscore the company’s strategic initiatives and recent financial results as foundational to its continued success.

In other recent news, Ameriprise Financial Inc. reported its first-quarter 2025 earnings, with adjusted operating earnings per share (EPS) of $9.50, exceeding the forecasted $9.14. Despite this positive EPS result, the company fell short of revenue expectations, reporting $4.35 billion against the anticipated $4.44 billion. Assets under management and advisement reached $1.5 trillion, showcasing the firm’s strong market position. Ameriprise returned $765 million to shareholders, representing 81% of its operating earnings. The company has authorized a new $4.5 billion share repurchase program and announced an 8% increase in dividends. Ameriprise continues to emphasize its solid financial health, with a strong excess capital position of $2.4 billion and $2.5 billion of available liquidity. CEO Jim Cracciolo highlighted the company’s diversified business model and resilience amid market volatility. The company is also investing in technology and advisor support, indicating a focus on future growth opportunities.

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