BUZZ - Jefferies and Morningstar remain optimistic about AMP after its Q3 earnings update

October 15 - ** Jefferies raised its target price on AMP AMP.AX from A$2.77 to A$2.80 after AMP released its third-quarter results update and maintained a "Buy" rating

** The broker said that platform net cash flows grew 20% year-on-year, while AMP's New Zealand wealth management business achieved its best quarterly performance since 2023

** Jefferies pointed out that platform net cash flows have reached A$4.5 billion (US$3.11 billion) fiscal year to date, up 29% year-on-year, putting AMP on track to surpass its FY25 result of A$5.1 billion

** Morningstar also raised its fair value estimate by 17% to A$1.75 per share, citing improved business quality and stabilization in the wealth management segment

** The investment research firm said AMP's wealth management business is showing improvement in both volume and profitability, although not as strong as the market had expected

** The firm added that as AMP Bank optimizes its funding structure, attracts more low-cost deposits, and prioritizes profitability over aggressive loan growth, margin pressure is expected to ease over time

** As of the last close, the stock had gained 32.6% year to date

(1 US dollar = 1.4457 Australian dollars)

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