BofA Securities double‑downgrades Ameriprise Financial and cuts price target
Bank of America Securities lowered its rating on Ameriprise Financial (AMP) to Underperform from Buy and reduced its price target to $445 from $570. The downgrade cites accelerating departures of high‑value financial advisors to rivals such as Charles Schwab, higher retention costs and margin pressure in wealth management. Ameriprise shares slipped 3.6% after the announcement. BofA also trimmed EPS forecasts through 2028 and cut its valuation multiple to 8× from 10×.
Why it matters
The lower rating and price target signal reduced earnings expectations, which may pressure AMP’s stock price further. Investors will watch upcoming earnings for guidance on retention expenses and margin trends, as BofA’s revised forecasts affect valuation models.
Key facts
- 1BofA Securities downgraded Ameriprise Financial to Underperform from Buy. investing.com
- 2The price target was cut to $445 from $570. investing.com
- 3Ameriprise shares fell 3.6% after the downgrade. investing.com
- 4The downgrade was driven by advisor attrition, including moves to Charles Schwab. seekingalpha.com
- 5Retention bonuses and transition assistance loans rose 25% in the latest filing. investing.com
- 6BofA reduced its EPS estimates through 2028 and lowered its valuation multiple to 8× from 10×. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.