Ameriprise Financial (NYSE:AMP) stocks fall 5.3% early in action on Tuesday, as Piper Sandler analyst John Barnidge cut the stock to Neutral overweight.
The downgrade comes as geopolitical tensions in Europe “hold back the potential to cool demand in this geography as well as some of these assets, particularly as attention returns to energy supplies in Europe,” Barnidge wrote in a note. to customers.
The geopolitical crisis could also increase the risk of lower rate hikes, which are a tailwind for the firm’s advisory and wealth management businesses, the analyst noted. Note that the probability that the Federal Reserve will raise its key rate by 25 to 50 basis points at the March 16 meeting is 99.3%.
In addition, pressures on margins could increase in a context of wage inflation and financial market volatility. In terms of its profitability, Ameriprise (AMP)’s EBITDA margin exceeds that of the industry median, according to the chart here.
Meanwhile, SA’s Quantitative Rating sees AMP shares as a strong buy, with top factor ratings in Momentum and Revisions. Wall Street analysts consider AMP a buy (6 Strong Buy, 5 Buy, 2 Hold).
Find out how Ameriprise Financial fared in the last quarter of 2021.