The ASX financial share AMP Ltd (ASX: AMP) has done really well in the last six months, the AMP share price has gone up around 30%.
Of course, long-term shareholders are still nursing losses – it's still down 60% compared to five years ago.
One expert has given a fairly positive commentary on the company. Let's take a look.
Better outlook for AMP shares
Matt Lattin from Marcus Today recently wrote on The Bull that he thought AMP was a hold, but acknowledged that the ASX financial share has "gathered momentum" after delivering its half-year result.
Lattin noted that AMP had returned $610 million to shareholders in the prior 12 months and has also restarted paying dividends.
He highlighted that the business achieved 11.8% underlying earnings per share (EPS) year over year growth to 3.8 cents in the FY23 first half.
Each of its business units delivered growth – AMP Bank delivered 23.9% underlying net profit after tax (NPAT) growth to $57 million, platforms delivered 25.7% underlying net profit growth to $44 million and the advice segment improved the net loss by $5 million to $25 million.
He finished his outlook thoughts on the business by saying that "the future appears brighter".
FY23 guidance
When the business announced its FY23 half-year result, it gave some guidance. Guidance can have an important influence on the AMP share price, depending on what it says.
It's targeting above-system residential loan growth in FY23 for AMP Bank, with the FY23 net interest margin (NIM) in the range of between 1.3% to 1.35%.
With the platforms segment, the FY23 assets under management (AUM) revenue margins are expected to be "broadly in line" with FY22 at around 48 basis points. Net cash flows, excluding pension payments, are expected to be in line with the FY23 first half.
The advice segment is expected to see continued NPAT improvements from cost efficiencies and ongoing scaling of practices.
In terms of the FY23 controllable costs, they're expected to be between $745 million to $755 million, compared to $757 million in FY22.
AMP share price valuation
According to Commsec, AMP is projected to generate EPS of 7.1 cents, which would put the valuation at 18 times FY23's estimated earnings. By FY25, it could make 10.2 cents of EPS, which would put the AMP share price at under 13 times FY25's estimated earnings.
