AMP double downgraded to Sell equivalent at BofA Securities
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Ameriprise Financial (AMP) was double downgraded to Underperform from Buy at BofA Securities on a near-term acceleration in financial advisor departures.
"AMP lost several large teams recently (Rise, Fathom, StackStone, Hughes, City Square) with three to SCHW," said analysts Craig Siegenthaler, Kareem Seif, Eli Abboud, and Ivory Gao.
"Large team departures may now be structural given the attractive economics in RIA ownership while stronger recruiting/retention from the wirehouses has also slowed breakaways to IBDs," said the research note.
"We are looking for more color on AMP's Q3 earnings call but expect that this could negatively impact AMP's wealth management margins over the NT," said the note.
Price objective was reduced to $445.00 from $570.00.
BofA's rating differs from the Seeking Alpha authors and Wall Street analysts rating of Buy. SA's Quant rating sees the stock as Strong Buy.
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