Key points
- AMP shares are down 41% over the last 12 months
- Citi believes value could be emerging
- However, it may be too soon to know for sure
The AMP Ltd (ASX: AMP) share price has started the week in the red.
In afternoon trade, the financial services company's shares are down 1.5% to 91.5 cents.
This means the AMP share price is now down 8% in 2022 and 41% over the last 12 months.
Is the AMP share price good value now?
One leading broker has been running the rule over the AMP share price and has given its verdict.
According to a note out of Citi, its analysts feel that value could be emerging in AMP's shares but warned that it still may be too soon to know for sure.
In light of this, the broker has retained its neutral high risk rating and cut its price target on the company's shares to $1.10.
This price target implies potential upside of 16% for the AMP share price over the next 12 months.
What did the broker say?
Citi commented: "At face value, AMP's sale of its infrastructure debt business to Ares Capital for 6% of AuM announced pre-Christmas looks like a reasonable deal but it leaves Private Markets as an even smaller business comprising only equity investments in infrastructure and real estate. Still capital to support these business now looks adequate."
"We factor this sale into our estimates as well as marking to market and making other mostly small adjustments. We reduce EPS by 2%/4%. While it is possible there is value in AMP, there is too much going on to assess this with certainty. We retain our Neutral/High risk call lowering our target price to A$1.10 with this now set at a ~20% (was ~10%) discount to our valuation to reflect well above average uncertainty," the broker added.
