AMP Ltd (ASX: AMP) shares had a disappointing time in 2023.
Over the course of the 12 months, the financial services company's shares lost almost 30% of their value.
The question now, is whether this has created a buying opportunity for investors in 2024? Let's see what brokers are saying about the company.
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Are AMP shares good value?
The broker community is largely divided on the AMP share price.
For example, over at UBS, its analysts have a sell rating and 82 cents price target on its shares. This implies a potential downside of approximately 11% for investors from current levels.
Then you have the team at Citi, which is sitting on the fence with its neutral rating and 90 cents price target. This is largely in line with where its shares trade today.
While its analysts were pleased with the news that AMP's class action has now been settled, it still doesn't appear to see a compelling enough risk/reward to recommend it as a buy.
Commenting on the class action settlement, it said:
News that the Buyer of Last Resort ("BoLR") class action has now been settled, in our view, presents a positive step forward in not only resolving its most significant legacy matter but also now potentially allowing AMP to progress with its third tranche of capital return. Settlement is for a total of A$100m, which is lower than our prior back of the envelope estimates.
Citi also highlights that the "BoLR settlement paves the way for third tranche capital return."
Though, that won't be the only return to look out for. Citi is forecasting a 5 cents per share dividend in FY 2023 and FY 2024, which equates to a 5.4% dividend yield.
Finally, over at Ord Minnett, its analysts see plenty of value on offer with AMP shares right now. They have an accumulate rating and a $1.30 price target, which suggests a potential upside of 41% for investors over the next 12 months.
The broker is also forecasting an attractive 6.5% dividend yield in FY 2024.
