Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Ameriprise Financial Needs To Keep Growing To Justify Its Price

Ameriprise Financial (NYSE:AMP) has been on a roll lately with its stock price moving markedly higher since the start of 2012. At the same time, earnings have grown nearly 50% ($4.61 for FY2011 vs. $6.46 for FY2013) with 1Q2014 showing a further ~30% jump to $2.01 a share. At the same time, assets under management for the firm (or AUM) grew 10.5% YOY despite the general skittishness in the markets especially as it relates to all things fixed income (which encompasses a wide array of AMP's investment products). The company also boosted its quarterly dividend and stock repurchase program, and given the solid fundamentals at the firm, I think EPS this year could well top $7.60 a share....

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