The AMP Ltd (ASX: AMP) share price has been a strong performer in recent weeks.
In fact, since this time last month, the financial services companyâs shares have risen almost 11%.
Why is the AMP share price surging higher?
There may be a few reasons why the AMP share price has taken off recently.
The first is a rebounding share market thanks to optimism that the rate hike cycle could be nearing an end. This has lifted the ASX 200 index by 7% over the same period, which has given overall investor sentiment a big boost.
In addition, it is worth noting that the AMP share price was beaten down thoroughly during earnings season. As you can see on the chart below, this means its shares are still down approximately 16% year to date despite this recent rally.
Some investors may believe that its shares were oversold and were snapping them up.
Anything else?
Also potentially giving the AMP share price a lift was a bullish broker note out of Ord Minnett.
According to the note, the broker recently upgraded its shares to a an accumulate rating with a $1.35 price target.
So, with its shares currently trading at $1.10, this implies potential upside of almost 23% for investors over the next 12 months.
And while the broker isn’t expecting AMP to pay a dividend in FY 2023, it is forecasting a 4 cents per share dividend in FY 2024. This means investors can look forward to a 3.6% dividend yield that year.
Ord Minnett made the move largely on valuation grounds after February’s sizeable pullback.
And with its price target still offering decent upside from current levels, the broker appears to believe that the gains may not be over just yet.
The post Why has the AMP share price rocketed 11% in a month? appeared first on The Motley Fool Australia.
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More reading
- Why did the AMP share price beat the ASX 200 in March?
- The first AMP dividend in over 2 years is being paid today. Here’s the lowdown
- 5 things to watch on the ASX 200 on Monday
- AMP share price slips amid expected first strike on remuneration
- Here are the top 10 ASX 200 shares 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 Scott Phillips.
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