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Investing.com - Macquarie downgraded AMP Ltd (ASX:AMP) (OTC:AMLYY) from Outperform to Neutral while maintaining a price target of AUD1.70.
The rating change follows a significant 42% price appreciation for AMP shares over the past month, which outpaced the ASX100’s 39% gain during the same period. Macquarie noted that short interest in the stock has doubled during this rally.
Macquarie highlighted AMP’s second quarter 2025 results, which showed strong investment markets and the first net inflows in the Savings & Investment division since the second quarter of 2017.
The research firm indicated it needs to see plans for AMP’s Bank division to achieve return on equity targets on a sustainable basis before considering a more positive outlook.
Macquarie also expressed interest in seeing a live demonstration of AMP’s "best in class" North platform before potentially reconsidering its rating on the financial services company.
In other recent news, AMP Ltd has received an upgrade from Goldman Sachs, with analyst Julian Braganza elevating the stock rating from Neutral to Buy and setting a new price target of AUD1.40. This upgrade reflects a positive outlook on AMP’s financial platforms and potential capital management strategies. The company has been experiencing stable positive net flows in its Platforms division, although its S&I segment continues to face outflows with signs of improvement. Goldman Sachs highlighted AMP’s potential to capitalize on non-core equity stakes, Deferred Tax Assets, and earnings from asset sales, such as the one involving Digital Bridge. These opportunities are not yet reflected in the firm’s Sum of the Parts valuation. Additionally, AMP’s banking operations may outperform peers in a lower interest rate environment, with ongoing cost reduction efforts and an attractive valuation at approximately 10.5 times 1-year forward earnings. The analyst noted some risks to platform flows due to the potential sale of the advice business, which might take time to materialize amid current market uncertainties.
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