A Look at Ameriprise Financial’s Valuation Following Harpland Acquisition and New Platform Initiatives

Ameriprise Financial added Harpland Financial Management to its network, bringing more than $160 million in client assets. This move, along with new banking products and tech upgrades, could drive future growth and efficiency.

See our latest analysis for Ameriprise Financial.

Ameriprise Financial's addition of Harpland Financial Management and its steady rollout of new tech and banking services have drawn attention in a period of declining share price momentum this year. The stock’s 1-year total shareholder return sits at -18.5%. Looking at three and five years, cumulative gains of 47.8% and 152.6% respectively suggest that long-term holders have still enjoyed strong performance despite short-term pressure.

If this mix of growth moves and shifting momentum in financial stocks has you thinking more broadly, consider opening up your watchlist to fast growing stocks with high insider ownership.

Given Ameriprise’s recent tech investments, advisor expansion, and a share price well off its highs, some investors may wonder if the market is underestimating the company’s long-term value or if future growth has already been fully accounted for.

Most Popular Narrative: 14.5% Undervalued

Ameriprise Financial’s most widely followed narrative estimates a fair value notably above the last close price. The narrative outlines pivotal catalysts and quantitative drivers, suggesting the market may be underpricing future profitability and growth momentum.

“Continued investment in technology and adviser platforms, including the PracticeTech system, is leading to higher adviser productivity and client satisfaction. This could potentially result in increased earnings and improved operational efficiency. Expansion of banking capabilities with new products like CDs and upcoming HELOCs and checking accounts is likely to contribute to revenue growth and provide stable interest earnings, enhancing net interest income over time.”

Read the complete narrative.

Wondering what earnings growth and profit assumptions create this sizable discount to current market price? This narrative connects rapid operational improvements and new revenue streams to projections well above current consensus sentiment. See the unique financial logic and the surprise numbers the narrative uses to justify its high fair value.

Result: Fair Value of $532.18 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing market volatility or higher-than-expected asset outflows could quickly undermine these bullish projections and put pressure on Ameriprise’s future returns.

Find out about the key risks to this Ameriprise Financial narrative.

Build Your Own Ameriprise Financial Narrative

You are always welcome to dig into the numbers on your own and assemble a narrative that best reflects your outlook. You can craft one yourself in just a few minutes. Do it your way

A great starting point for your Ameriprise Financial research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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