First quarter update revealed Australian wealth net outflows of -$1.8bn. While AMP had indicated weak flows were likely to continue in 2019 the numbers were softer than Morgans expected.
On the positive side, assets under management rose 4-7% with the benefit from recent positive investment market moves. Morgans believes the share price has largely found a bottom but righting the ship will take time.
In light of the earnings pressures and areas of uncertainty the broker maintains a Hold rating. Target is reduced to $2.30 from $2.32.
Target price is $2.30.Current Price is $2.26. Difference: $0.04 – (brackets indicate current price is over target). If AMP meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).