AMP - Credit Suisse rates the stock as Outperform
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The broker regrets not downgrading its rating on AMP earlier, but no one was to know just what brand damage the Royal Commission would inflict. It is still unknown just what the ongoing earnings risk may be, but the broker believes the downside is likely now priced in, hence Outperform retained.
A special mention goes out to the fact CS analysts are still talking about the CEO having announced he will leave at the end of the year. He has stepped down with immediate effect and already written a pathetic goodbye missive about this is not the AMP you all know. Take note Credit Suisse.
Irrespective, one cannot dispute the fact the absence of a CEO puts in doubt planned asset sales and commitment to the current strategy. The broker has cut earnings forecasts and its target to $4.80 from $5.45, noting uncertainty remains.
Target price is $4.80.Current Price is $4.01. Difference: $0.79 - (brackets indicate current price is over target). If AMP meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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