AMP 9.02% $1.21 amp limited

macca's view

  1. Yak
    13,672 Posts.
    AMP
    We have finalised our post-demerger earnings forecasts with downgrades to prospective
    earnings of 30–35%.
    Revised UK life operating margin forecas ts are, to a large degree, dependent upon
    management’s ‘pro forma steady state’ indicative earnings guidance. Given a reported first
    quarter 2003 UK Financial Services operating loss, material yet unquantifiable changes in
    asset allocation and a write-off of service company profit expectations, the ‘forecastability’ of
    likely UK life profit margins remains poor.
    We have assumed that the relocation of the $1.15 billion reset preference securities to
    Australia will lead to the loss of tax deductibility on the 8.62% coupon. Thereby depressing
    forecast earnings by $30m per annum, significantly increasing the cos t of capital for the
    proposed new “AMP” and further eroding dividend paying capacity.
    Consistent with the above, we have further downgraded our earnings based valuation by 3%
    to $5.59 per share.
    In view of likely ongoing earnings and dividend uncertainty, the significant delay before
    finalisation of the demerger proposal, a likely shortfall from the retail share purchase plan and
    no obvious short term performance catalyst, AMP is likely to continue underperforming in the
    near term.
    ASX Code:
    AMP
    Share Price:
    $5.16
    Short term:
    Underperform
    Long term:
    Medium
    Volatility index:
    $5.16
 
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Last
$1.21
Change
-0.120(9.02%)
Mkt cap ! $4.158B
Open High Low Value Volume
$1.35 $1.37 $1.18 $38.26M 30.83M

Buyers (Bids)

No. Vol. Price($)
5 210006 $1.21
 

Sellers (Offers)

Price($) Vol. No.
$1.22 10000 1
View Market Depth
Last trade - 16.10pm 03/04/2020 (20 minute delay) ?
(live)
Last
$1.21
  Change
-0.120 ( 8.89 %)
Open High Low Volume
$1.36 $1.37 $1.19 6424431
Last updated 15.59pm 03/04/2020 (live) ?
AMP (ASX) Chart
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