BofA double-downgrades Ameriprise to Underperform, cuts price target to $445 from $570 (Oct 19)
What happened
Bank of America analyst Craig Siegenthaler cut Ameriprise Financial (AMP) two notches to Underperform from Buy and slashed the price target to $445 from $570 in an Oct 19 research note. The note named five departed advisor teams (Rise, Fathom, StackStone, Hughes, City Square) and pointed to a 25% surge in transition assistance loans as evidence of near-term wealth-management margin compression and negative 2026 advisor headcount growth. Proactive retention bonuses paid to advisors are biting margins and may not retain big teams long-term, per the analysis. Shares fell 4.07% to $480.41 on Monday, well off the $572 52-week high.
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Who’s affected
- Ameriprise Financial (AMP) directly; negative read-through for wealth-management peers such as Schwab, LPL Financial, and Raymond James, which face the same advisor-mobility and retention-cost pressures.