AMP shares gain after price target upgrade from Macquarie
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The news: Shares in AMP rose on the ASX as Macquarie lifted its price target on the wealth manager following "signs of stabilisation" in the business.
The numbers: AMP shares were up 1.67% to $1.34 by 2:31pm AEST, after gaining more than 40% over the last 12 months. The wider financial sector fell 0.16%.
Macquarie reiterated its 'neutral' rating on AMP but raised its 12-month target price by 3% from $1.26 to $1.30. It also made changes to its earnings forecasts of 3.2% in FY24, 5.4% in FY25, and 2.6% to 3.6% in subsequent years.
Macquarie analysts noted that AMP's balance on gross loans, acceptances and advances (GLAA) has fallen 0.3% from June 2024, versus company expectations of "slight growth" by December 2024.
The context: Macquarie analysts said they are "beginning to see signs of stabilisation" in AMP's underlying business as simplification of the company continues.
However, analysts said they will wait to see AMP's share price performance after its share buyback is completed later this month.
The source: Macquarie research
