BofA downgrades Ameriprise to Underperform over advisor departures
BofA Securities cut Ameriprise to Underperform and lowered its price target to $445 amid advisor team exits and margin pressure.
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what happened
According to Barron's, BofA Securities sharply downgraded Ameriprise Financial to Underperform from Buy and cut its price target to $445 from $570. On Monday the shares fell 3.2% to $484.77, among the weakest performers in the S&P 500.
The analysts link the problem to advisor departures: five teams left between May and September, overseeing about $12.75 billion in client assets. Three of them launched independent firms using Charles Schwab as custodian. BofA views the losses as structural, and retention bonuses could weigh on operating margins. It projects Ameriprise's organic growth at 1.6% next year, versus 8.1% for LPL Financial and 5.3% for Raymond James.
why it matters
Wealth managers are now judged on their ability to keep advisors and attract assets. The analysts also noted that nearly half of expected long-term earnings growth would come from buybacks, and rising rates on client cash driven by AI-related competition could squeeze income.
market impact
Ameriprise: advisor outflows and margin pressure weigh on the stock, with the wealth management sector also under pressure
tags
instruments
sources
- Ameriprise Has an Advisor Problem. It Could Get Worse. — Barrons.com, 19 October 2026 at 16:53 UTC
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