(By Balachander) Ameriprise Financial Inc. (NYSE: AMP) shares were dropped to "outperform" from "top pick" by RBC Capital Markets following the company's investor day held on November 14.
The brokerage adjusted its price target on the stock to $71 from $72.
"Ameriprise's annual investor day yesterday left us thinking that the company's longer-term prospects remain bright – we see asset-management flows at Ameriprise's Columbia subsidiary eventually turning positive," RBC wrote.
In addition, the brokerage said it sees profit margins at the company improving over time and also acknowledge that Ameriprise has had its share of setbacks this year, especially at Columbia, and that those disappointments at least over the near term could continue.
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Finally, while it was not discussed during the investor day, the decision by Ameriprise in the September quarter to terminate the employment of a portfolio manager who purportedly broke company policy also caused hundreds of millions of dollars in outflows, RBC noted.
"Our experience with PM changes is that the investor angst caused by them is rarely a one-quarter event, so we wouldn't be surprised if we saw further fallout in the December quarter," the brokerage wrote.
Ameriprise Financial is a financial services company serving the financial planning needs of the mass affluent and affluent. Ameriprise Financial Services offers financial planning services, investments, insurance, and annuity products. It operates through five segments.
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The stock, which has been trading in the 52-week range of $41.10 to $61.04, inched 0.17 percent higher to trade at $57.68 on Thursday.