On Wednesday, Morgan Stanley adjusted its outlook on Ameriprise Financial (NYSE:AMP (OTC:AMLTF)), increasing the price target to $445 from the previous $437. This adjustment follows the release of the company's first-quarter earnings for 2024. Despite the updated price target, the firm decided to maintain an Equalweight rating on the stock.
The adjustment reflects a nuanced view of Ameriprise Financial's financial projections. Morgan Stanley has revised its second-quarter 2024 adjusted earnings per share (EPS) estimate down by 7 cents to $8.43, citing slightly higher expenses than previously anticipated.
Still, the outlook for the full years 2024 and 2025 is more optimistic, with adjustments upwards of 1.4% to $35.31 for the 2024 estimated EPS and a 3.4% increase to $38.33 for the 2025 estimated EPS. The positive revisions for the forthcoming years are primarily attributed to a lower anticipated share count.
The new stock price target of $445 represents a 2% increase from the prior target. The rationale behind this decision was provided in a statement by Morgan Stanley, which noted, "Raise PT $8 (+2%) to $445; remain Equal-Weight." This suggests a balanced perspective on the stock, acknowledging both the near-term cost pressures and the positive long-term earnings adjustments.
Investors and market watchers will likely monitor Ameriprise Financial's stock performance in the context of these updated projections. The Equalweight rating indicates that Morgan Stanley believes the stock should perform in line with the expectations for the overall market or its sector.
Ameriprise Financial is set to navigate the upcoming quarters with these revised expectations, and its performance relative to Morgan Stanley's projections will be of interest to stakeholders and analysts alike. The updated price target and earnings estimates are now part of the financial landscape for Ameriprise Financial as it moves forward through the fiscal years 2024 and 2025.
InvestingPro Insights
The recent adjustment of Ameriprise Financial's price target by Morgan Stanley to $445 aligns with the company's strong financial health as reflected in the latest InvestingPro data. With a market capitalization of $41.04 billion and a robust P/E ratio of 13.69, Ameriprise Financial demonstrates stability in the market. Further solidifying this perspective is the company's impressive 13.81% revenue growth over the last twelve months as of Q1 2024, indicating a robust upward trajectory in earnings.
InvestingPro Tips highlight Ameriprise Financial's consistent performance, with the company raising its dividend for 19 consecutive years and maintaining payments for 20 consecutive years. This consistency is a testament to Ameriprise Financial's financial resilience and commitment to shareholder value. Moreover, the company's liquid assets exceed short-term obligations, providing a cushion for operational flexibility and investment opportunities.
For readers looking to delve deeper into Ameriprise Financial's potential, there are more InvestingPro Tips available, including insights into earnings revisions and profitability predictions. To access these additional tips and take advantage of real-time metrics, visit https://www.investing.com/pro/AMP and remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 11 more InvestingPro Tips available, investors can gain an in-depth understanding of Ameriprise Financial's market position and future outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.