Why this top broker says the AMP share price is 27% over-valued

The ASX 200 wealth manager’s assets under management declined in the first quarter of 2022.
The post Why this top broker says the AMP share price is 27% over-valued appeared first on The Motley Fool Australia. –

The AMP Ltd (ASX: AMP) share price is down 0.7% in afternoon trading.

AMP shares closed yesterday at $1.16 and are currently trading for $1.15.

But even with that dip, analysts at UBS believe the S&P/ASX 200 Index (ASX: XJO) listed wealth management company is 27% overvalued.

What is the UBS price target?

Analysts at the leading broker have retained their sell rating on AMP shares.

They reported that AMP’s funds under management update, released last Thursday, was in line with their expectations. However, AMP’s assets under management were below expectations.

The company’s Australian Wealth Management segment’s assets under management declined to $136.5 million in Q1 2021, down from $142.3 million in Q1 2021. The fall was due to a combination of outflows and investment losses.

Citing concerns over a structural deterioration in the AMP’s core wealth business, UBS analysts believe the AMP share price is lofty. UBS has a 90 cent price target on the company’s shares.

That’s just over 27% below the current price of $1.15.

AMP share price snapshot

Whether AMP shares will retrace 27% in line with the expectations of UBS analysts remains to be seen.

We do know that, so far in 2022, the ASX wealth manager has been handily outperforming.

Year-to-date the AMP share price has gained 15.2%. That compares to a loss of 7.2% posted by the S&P/ASX 200 Index (ASX: XJO).

AMP also pays a 3.1% trailing dividend yield, 90% franked.

The post Why this top broker says the AMP share price is 27% over-valued appeared first on The Motley Fool Australia.

Should you invest $1,000 in AMP right now?

Before you consider AMP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Top brokers name 3 ASX shares to sell next week
Could the worst now be over for the AMP share price?
Top brokers name 3 ASX shares to sell today
AMP share price rebounds as Woolworths ends $4b superannuation contract
How is the AMP share price looking in May?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!