UPDATE: Morgan Stanley Reiterates On Ameriprise Financial On Mixed Factors

In a report published Wednesday, Morgan Stanley analyst Nigel Dally reiterated an Overweight rating on Ameriprise Financial AMP, but lowered the price target from $138.00 to $134.00. In the report, Morgan Stanley noted, “We view Ameriprise as an attractive accumulation story, with expanding margins and substantial capital management, which together are expected to lead to further solid EPS growth. "This quarter's results generally supported this thesis, with further growth in advice and wealth management margins driving earnings ahead of expectations, while share buybacks also came in above plan. That said, results elsewhere including some challenges, including unfavorable CATs in their property casualty business, modest deterioration in the core asset management margin, and continued flow challenges. Further, given the relatively strong performance of the stock heading into the result, we would tend to expect a somewhat muted reaction to the EPS beat. That said, longer‐term, we continue to believe the stock the has one of the more attractive risk‐reward profiles among the life and annuity players, leading us to reiterate our Overweight rating.” Ameriprise Financial closed on Tuesday at $120.84.