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UBS Cuts Price Target on Ameriprise Financial (AMP) After Meeting with Management

June 28, 2016 8:05 AM EDT
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Price: $424.36 +1.16%

Rating Summary:
    12 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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UBS reiterated a Buy rating on Ameriprise Financial (NYSE: AMP), and cut the price target to $120.00 (from $125.00), after meeting with management. AMP expects near-term productivity to be negatively impacted as advisors focus on client outreach related to compliance.

Analyst Suneet Kamath commented, "AMP expects quarterly expenses of $7-8 million (pre-tax) likely through YE 2017 associated with complying with the DOL's new fiduciary standard. Moreover, the company expects near-term productivity could be negatively impacted as advisors focus on client outreach related to compliance. As such, we are holding our Advice & Wealth Management pre-tax margin forecasts at ~17% through 2017. Along with an FX headwind in UK-based Threadneedle, these items drive reductions in our 2016 EPS estimate from $9.80 to $9.55 and our 2017 EPS estimate from $11.40 to $10.95. We also lower our price target from $125 to $120, based on this revised earnings forecast."

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 $85.52 yesterday.



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