AMP Bulls See Upside from China Life Partnership

Dow Jones
Jul 29

0216 GMT - AMP's bulls at UBS see further potential valuation upside for the Australian wealth manager from its partnership with China Life Pension Co. Maintaining a buy rating on the stock, the investment bank's analysts point out that China has now surpassed AMP's platforms business as the ASX-listed group's primary profit engine. It contributed 33% of underlying profits for the June half, they write in a note. After reviewing China's pension system, they think that persistent strong growth at the partnership could potentially lead to AMP beating medium-term consensus forecasts. Additionally, they see positive risks from superannuation-exposed Australian wealth flows, capital-management potential and AMP's strategic options for its bank. UBS lifts its target price by 16% to A$2.55. Shares are up 3.3% at A$2.21.

 

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