Shares of AMP Ltd (ASX: AMP) are edging forwards today and now rest more than 2% in the green at $1.07.
Traders drove AMP shares high early on in the session before prices levelled off, and have been consistent throughout the day since.
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AMP share price drivers
AMP has been making headlines amid reports it has been in talks with a list of investors regarding the potential sale of assets under Collimate Capital.
As TMF reported last week, "Collimate Capital is the new name of the company's private markets business, which AMP is currently in the process of demerging. It is a global asset manager and a leader in real assets."
Given its decision, there's likely to be a shift in earnings and cash flows if a sale goes through.
Analysts at Macquarie were quick to note their uncertainty on a potential sale yesterday in a release to clients.
"Should Dexus acquire the platform on an attractive valuation to adjust for the earnings risks, it could more than double the funds management platform, which we view as undervalued by the market," the broker commented.
Meanwhile, analysts at Bloomberg Intelligence are looking to other market transactions in order to help value AMP in its parts.
"Pendal's rejection of Perpetual's $2.4 billion takeover offer because it "significantly undervalues" the business may remind the market that AMP Capital alone may be worth $3.7 billion vs. AMP Ltd.'s $3.2 billion market valuation," Bloomberg analyst Matt Ingram wrote in a recent note.
"The gap implies the market ascribes minimal value to AMP's wealth-management and banking businesses, despite their combined $240 million in 2021 profit."
In the last 12 months, the AMP share price has slipped around 11% into the red. However, this year to date it has gained 6% as macro conditions improve for ASX financials.
