The financial experts at Citi have forecast an upside for the Australian wealth management firm, AMP (ASX:AMP), and share registry company, Computershare (ASX:CPU).
The analysts express that augmented earning quality and acquisitions at Computershare would result in a consistent earnings stream.
Meanwhile, they suggest that AMP’s margins seem to have stabilized, with a buyback and expected new dividend policy providing further support.
They also note that investment management firm Challenger’s growth rate may be muted by capital availability and remain wary of its asset exposure if tighter-for-longer credit conditions start to more significantly impact.
Perpetual’s outcome from its strategic review is anticipated to be a crucial near-share price driver.
The delayed platform margin squeeze at wealth manager Insignia Financial assisted market perception of the company, however, this respite is expected to be briefly lived.
AMP is a wealth management firm in Australia, providing a range of financial products and services to the corporate and retail sectors.