Credit Suisse Starts Ameriprise Financial (AMP) at Neutral

October 7, 2016 7:30 AM EDT
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Price: $90.13 --0%

Rating Summary:
    7 Buy, 10 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 7 | Down: 11 | New: 3
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Credit Suisse initiates coverage on Ameriprise Financial (NYSE: AMP) with a Neutral rating and a price target of $116.00.

Analyst John Nadel commented, "AMP generates the highest ROE among our coverage given a less capital intensive business mix and consistently generates excellent free cash flow. That said, given a combination of slowing margin expansion in the company’s Advice & Wealth Management segment and uncertainty surrounding the impact of the upcoming DOL fiduciary rule, we see somewhat balanced risk/reward from current levels. Additionally, underlying net flow trends in Asset Management (excl. former parent outflows) have been weak. On a positive note, the company should deploy capital at a combined payout ratio (buybacks + dividends) well in excess of 100% of Operating Earnings over the next few years given solid FCF generation and ~$2b excess capital. Additionally, AMP has positive leverage to rising short-term interest rates. A December Fed hike by 25bps would add ~$0.24 to our 2017/18E EPS."

For an analyst ratings summary and ratings history on Ameriprise Financial click here. For more ratings news on Ameriprise Financial click here.

Shares of Ameriprise Financial closed at $102.81 yesterday.

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