Deutsche Bank Downgrades Ameriprise Financial (AMP) to Hold
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Deutsche Bank downgraded Ameriprise Financial (NYSE: AMP) from Buy to Hold.
Analsyt Brian Bedell said, "We rate AMP shares as a Hold. While we expect the company's earnings growth and ROE to continue to benefit from improving fundamentals in the Advice & Wealth Management segment, we cannot ignore the increased uncertainty that the DOL fiduciary rule, which begins to be implemented in April 2017, brings. We also point to continued net flows pressure in Asset Management, which may be intensified by the DOL implementation in 1Q17. These may limit the capacity for re-rating, and even pose the risk for correction, despite the continued shift in business mix away from capitalintensive businesses and robust excess capital and capital deployment."
"Against that, we note that with Ameriprise often benchmarked to life insurers, we believe that it is well positioned in that group to better fair the weak interest rate environment in the long end while uniquely positioned to benefit from the short end, should the Fed hike rates this year," added the analyst.
Shares of Ameriprise Financial closed at $98.70 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wedbush Raises Price Target on Francesca's (FRAN) Following 3Q Report
- UPDATE: Stifel Downgrades PennTex Midstream Partners, LP (PTXP) to Hold
- Credit Suisse Upgrades Juniper Networks (JNPR) to Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Downgrades
Related EntitiesDeutsche Bank, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!