S&P 500 pulls back from record high as chip-led slump in tech weighs
Investing.com - Goldman Sachs downgraded AMP Ltd (ASX:AMP) from Buy to Neutral on Tuesday, while raising its price target to AUD1.60 from AUD1.40.
The investment bank cited concerns about the sustainability of AMP’s strong second-quarter 2025 cash flows, despite acknowledging their robust performance. Goldman Sachs noted possible benefits from Macquarie’s platform amid recent scrutiny, but flagged remaining risks to flows following AMP’s advice business sale.
The downgrade also reflected uncertainty surrounding multiple unquantified class actions against AMP. These legal challenges involve fees charged on cash products, commissions for insurance advice, Munich Re proceedings, life insurance premiums, and Dexus proceedings.
Goldman Sachs pointed to AMP’s banking division as another area of concern, specifically highlighting challenges with net interest margin and cost-to-income ratio.
The investment firm also considered AMP’s valuation to be elevated compared to historical levels, trading at approximately 14.5 times its projected fiscal year 2026 earnings.
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