Keefe, Bruyette & Woods Maintains a 'Market Perform' Rating on Ameriprise Financial (AMP); Lowers Estimates

June 22, 2009 9:54 AM EDT

Keefe, Bruyette & Woods maintains a 'Market Perform' rating on Ameriprise Financial (NYSE: AMP) and $28 price target, but lowers estimates.

Keefe analyst says, "AMP completed a $1 billion common stock offering (incl. shoe), with the proceeds earmarked for future asset management/retail distribution deals. With no acquisition announcement to date, we are assuming a modest 2% return on the proceeds for now. On this basis our 2009 and 2010 estimates are diluted by 9% and 13%, respectively, going from $2.35 to $2.15 in 2009 and from $3.10 to $2.70 in 2010."

"The $1 billion capital raise was large relative to AMP's balance sheet, and a potential acquisition in the $1 billion-plus range would be large relative to AMP's historical deals. As a result, we believe there is likely to be an overhang on the stock until the outcome of AMP's acquisition efforts is more clear."

To see more analyst ratings on AMP Click Here.

Ameriprise Financial, Inc. is engaged in providing financial planning, products and services that are designed to be utilized as solutions for its clients cash and liquidity, asset accumulation, income, protection, and estate and wealth transfer needs.

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