AMP Ltd
AMP: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$2.53 | Sxlml | Qfr |
AMP: Tracking Slowly to Better Profitability
We maintain our fair value estimate for no-moat AMP at AUD 1.35 per share. Platform net outflows (excluding pension) of 1.9% of funds under administration and loan growth of 4.1% for the first nine months of 2023 are tracking our full-year forecasts of 2.2% and 5.0%, respectively. Shares screen as undervalued at current prices. A rerating is contingent on moderating net outflows and a rebound in operating margins from the lows experienced in 2022-23, which we consider likely.