Ameriprise Financial stock dips 5% as Piper Sandler cuts to Neutral

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Ameriprise Financial (NYSE:AMP) shares fall 5.3% in early Tuesday action, as Piper Sandler analyst John Barnidge cut the stock to Neutral from Overweight.

The downgrade comes as geopolitical tensions in Europe "hold potential to cool demand in this geography along with some of these assets specifically as focus returns to energy supplies in Europe," Barnidge wrote in a note to clients.

The geopolitical crisis could also increase the risk of fewer rate hikes, which are a tailwind for the company's advice and wealth management business, the analyst noted. Note the probability that the Federal Reserve will hike the policy rate by 25-50 basis points at the March 16 meeting is 99.3%.

In addition, margin pressures could increase in a backdrop of wage inflation and financial market volatility. Looking at its profitability, Ameriprise's (AMP) EBITDA margin exceeds that of the sector median, according to the chart here.

Meanwhile, SA's Quant Rating screens AMP stock as a Strong Buy, with the best factor grades in Momentum and Revisions. Wall Street Analysts view AMP as a Buy (6 Strong Buy, 5 Buy, 2 Hold).

See how Ameriprise Financial fared in the last quarter of 2021.