The AMP Ltd (ASX: AMP) share price has been a strong performer in recent weeks.
In fact, since this time last month, the financial services company's shares have risen almost 11%.
Image source: Getty Images
Why is the AMP share price surging higher?
There may be a few reasons why the AMP share price has taken off recently.
The first is a rebounding share market thanks to optimism that the rate hike cycle could be nearing an end. This has lifted the ASX 200 index by 7% over the same period, which has given overall investor sentiment a big boost.
In addition, it is worth noting that the AMP share price was beaten down thoroughly during earnings season. As you can see on the chart below, this means its shares are still down approximately 16% year to date despite this recent rally.
Some investors may believe that its shares were oversold and were snapping them up.
Anything else?
Also potentially giving the AMP share price a lift was a bullish broker note out of Ord Minnett.
According to the note, the broker recently upgraded its shares to a an accumulate rating with a $1.35 price target.
So, with its shares currently trading at $1.10, this implies potential upside of almost 23% for investors over the next 12 months.
And while the broker isn't expecting AMP to pay a dividend in FY 2023, it is forecasting a 4 cents per share dividend in FY 2024. This means investors can look forward to a 3.6% dividend yield that year.
Ord Minnett made the move largely on valuation grounds after February's sizeable pullback.
And with its price target still offering decent upside from current levels, the broker appears to believe that the gains may not be over just yet.
