BofA cuts Ameriprise Financial stock price target on lower growth outlook
BofA Securities reduced its price target for Ameriprise Financial (AMP) to $570 from $616, citing lower growth expectations. EPS estimates for 2026-2028 were also cut. Despite this, the stock is seen as fairly valued with a P/E ratio of 11.88 and a PEG ratio of 0.38. Ameriprise reported Q2 2026 earnings of $11.07 per share and revenue of $4.94 billion, exceeding expectations.
How this was made
The 30-second read
Why it matters
The downgrade may trigger short‑term selling pressure, but the company's recent earnings beat could cushion the impact.
Market read
Analyst target revisions are a common catalyst for short‑term price moves in financial stocks.
What to watch
Recent strong Q2 results and revenue growth could support a higher valuation than the new target.
Background
BofA Securities updated its valuation model for Ameriprise Financial, reflecting a lower organic growth outlook and higher payout to advisors.
Ticker impact
BofA Securities lowered AMP's price target to $570 and cut its 2026‑2028 EPS forecasts.
likely pressure as the market prices in the lower growth outlook
The new target is below current price and EPS forecasts were reduced, indicating weaker expectations.
Market effects
May weigh on the broader financial services sector as analysts reassess growth forecasts.
Limited to U.S. markets where AMP trades.
Minimal global impact beyond U.S. financial stocks.
Counterpoint
Some investors may view the target cut as an overreaction and see buying opportunity at current levels.
Key entities
- companyAmeriprise Financial Inc.
U.S. financial services firm (ticker AMP).
- analystBofA Securities
Bank of America research unit providing the price target revision.
