Citi analysts remain of the view that the optimum strategy for the AMP board to release value for shareholders is through spinning off some of the divisions.
The analysts maintain there is ongoing interest for AMP Capital, as well as for AMP Wealth Management. In the same vein, the analysts also believe any deal is by no means guaranteed.
If it were left to an all-in restructuring strategy, Citi believes shareholders will be locked into a long drawn out process.
Neutral/High risk rating remains in place while the price target has improved to $1.60 from $1.55. Estimates have slightly increased following mark-to-market update.
Sector: Insurance.
Target price is $1.60.Current Price is $1.62. Difference: ($0.02) – (brackets indicate current price is over target). If AMP meets the Citi target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
