S&P 500 pulls back from record high as chip-led slump in tech weighs
Investing.com - JPMorgan downgraded AMP Ltd (ASX:AMP) (OTC:AMLYY) from Overweight to Neutral on Monday, while raising its price target to AUD1.55 from AUD1.40.
The rating change comes despite AMP showing strong flows for the second quarter of 2025, particularly in its Superannuation & Investments division, and demonstrating innovative product designs during its investor day on Monday that could drive improved flows.
JPMorgan acknowledged AMP’s strong cost control and robust capital position following the company’s business restructure, but cited several concerns that prompted the downgrade.
Chief among these concerns is class action risk, with a potentially significant ruling expected in September 2025. The firm also noted that AMP’s bank remains subscale and struggles to grow while earning its cost of capital.
Additional factors weighing on the rating include AMP’s continued loss of market share despite improved flow trends, and ongoing margin compression in Platforms and Superannuation & Investments due to growth in managed accounts. AMP is scheduled to report its first-half 2025 results on August 7.
In other recent news, AMP Ltd has reported its second quarter 2025 results, highlighting strong investment markets and the first net inflows in its Savings & Investment division since the second quarter of 2017. These results are crucial for investors, as they reflect the company’s current financial performance and market position. Additionally, Macquarie has downgraded AMP’s stock rating from Outperform to Neutral, following a significant 42% price appreciation over the past month. Despite the downgrade, Macquarie has maintained its price target at AUD1.70. The firm noted that short interest in AMP’s stock has doubled during this rally. Macquarie emphasized the need for AMP to present plans for its Bank division to achieve sustainable return on equity targets. The research firm also expressed interest in AMP’s North platform, suggesting that a live demonstration could influence future ratings. These developments provide investors with key insights into AMP’s recent activities and strategic direction.
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