Shares of Ameriprise Financial (AMP) have returned 75% this year through Friday's close at $106.68. The shares trade for 3.0 times their reported Sept. 30 book value (excluding AOCI and income or losses from consolidation of investment entities) of $35.26. The shares trade for 13.7 times the consensus 2014 EPS estimate of $7.81, and for 11.9 times the consensus 2015 EPS estimate of $8.98.
"We like [AMP's] low-risk balance sheet, strong capital position, active capital management, rising advisor productivity, rising advice and wealth management (AWM) margins, and operating leverage," Schuman wrote. KBW's price target, "values AMP at 3.4x book, a multiple we believe is wholly justified by our estimated 2015 ROE of 23%," the analyst added.
The following chart shows the year-to-date performance of Prudential and Ameriprise against the S&P 500 ^GSPC:
data by YCharts
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