AMP pre-reported so the focus of the 2018 results was on the composition of earnings and what the business might look like going forward.
Macquarie observes more clarity around the remaining businesses but notes the company has made its third material reduction to estimates in the last six months.
Still, re-basing removes an overhang and the broker expects 2019 to be a transition year.
There is limited scope for the stock to re-rate and Macquarie maintains a Neutral rating. Target is reduced to $2.30 from $2.50.
Sector: Insurance.
Target price is $2.30.Current Price is $2.18. Difference: $0.12 – (brackets indicate current price is over target). If AMP meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
