NEW YORK (TheStreet) -- Shares of Ameriprise Financial(AMP) - Get Report are dipping 0.73% to $96.37 on Monday morning as the company prepares to reports fiscal 2016 second quarter results after tomorrow's market closes.
Analysts expect the Minneapolis-based financial services company to post earnings of $2.28 per share on revenue of $2.87 billion.
Additionally, Ameriprise Financial was downgraded to "sector perform" from "outperform" at RBC this morning. The firm cut its price target on the stock to $98 from $121, citing near-term challenges.
"We're concerned about the fact that Ameriprise is one of the only companies in our coverage universe to be facing the U.S. Department of Labor's new Fiduciary rule on multiple fronts," RBC continued in an analyst note.
The DOL's new fiduciary rule is designed to ensure that investment advisers are weighing their clients' interests above their own surrounding fees and investment choices, USA Today reports.
Ameriprise's RiverSource Life will likely have to reform its product lineup as a result of the rule, while its Columbia Management fund company and 10,000-person financial adviser network are also expected to be affected by the rule, RBC noted.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate AMERIPRISE FINANCIAL INC as a Buy with a ratings score of B-. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: AMP