AMP Ltd
AMP: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$7.68 | Rlv | Yglv |
AMP: Market Undervaluing Potential Longer-Term Bank Margin Recovery
We trim our fair value estimate on no-moat AMP to AUD 1.30 per share from AUD 1.35 due to a slower-than-expected recovery in AMP Bank’s net interest margins. Price competition led to a lower NIM for 2023 than we anticipated. The outlook for NIM recovery beyond 2023 is also slower, differing from our earlier forecast for a faster rebound. AMP Bank is expected to contribute around 40% of AMP’s operating earnings over the five years to 2027.