It certainly has been another disappointing year for the AMP Ltd (ASX: AMP) share price.
The embattled financial services company’s shares have shed 31% of their value in 2021.
This means the AMP share price is now down a bitterly disappointing 80% over the last five years.
Is the AMP share price finally good value?
According to a recent note out of Citi, there could be value in the AMP share price at the current level.
The note reveals that the broker currently has a neutral (high risk) rating on the company’s shares with a price target of $1.25.
So while the broker’s rating is only neutral, with the AMP share price trading at $1.08, its price target implies potential upside of almost 16% over the next 12 months.
What did the broker say?
Citi has been pleased with the progress that AMP is making, though it acknowledges that there’s still a lot of work to do.
It commented: “While AMP has clearly made some progress in 1H21, there is still a long way to go. There will be no dividend until at least 1H22 and earnings are guided to fall in 2H. However given the 1H beat on higher “investment earnings” we nonetheless lift our FY21E by 3% with little change to later years.”
The broker also notes that there’s still a large amount of uncertainty regarding the AMP Capital business and demerger, which explains why it is retaining its neutral rating despite its attractive price target on the AMP share price.
Citi explained: “As a new CEO takes the helm, it still remains unclear what shape AMP Capital will be in by the time of its targeted private capital markets demerger with its profit currently on a declining path. Further, while its remediation program is finished and there is progress in advice, there is still a long way to go to put the business on a profitable footing. Given slightly reduced, but still considerable, uncertainty we retain our Neutral/High Risk call and A$1.25 target price.”
Should you invest $1,000 in AMP right now?
Before you consider AMP, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- How has the AMP (ASX:AMP) share price beaten the market over the past week?
- Why did the AMP (ASX:AMP) share price have such a terrible September?
- Here are the 3 most traded ASX 200 shares so far this Tuesday
- The AMP share price is up 6% in a week, here’s why
- These 3 ASX 200 shares are topping the volume charts today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3ar1jCO