AMP Ltd (ASX: AMP) shares are 0.3% lower at $1.69 while the S&P/ASX 200 Index (ASX: XJO) is down 0.4% on Thursday.
The ASX 200 financial share has leapt 33% higher in just six months. AMP shares hit a five-year high of $1.90 last month.
The recent upward trajectory included a big boost on the back of AMP's half-yearly report, with the share price rising 12.6% over two days.
That was one of the best share price reactions among the market's top 100 companies during earnings season.
AMP reported a 1.8% rise in revenue to $632 million and a 9.2% lift in underlying net profit after tax (NPAT) to $131 million for 1H FY25.
Statutory NPAT fell 4.9% to $98 million.
Of the underlying NPAT, AMP Bank accounted for $36 million (up 29%), Platforms accounted for $58 million (up 7.4%), Superannuation & Investments accounted for $34 million (flat), and New Zealand Wealth Management accounted for $19 million (up 11.8%).
Underlying earnings per share (EPS) rose 18.2% to 5.2 cents per share, reflecting better earnings and the final stages of the buyback.
AMP will pay a final dividend of 2 cents per share with 20% franking on 26 September.
The full-year dividend was 3 cents per share, 20% franked, giving AMP shares a trailing dividend yield of 1.8%.
Top broker Macquarie points out that AMP shares are trading on a forward price-to-earnings (P/E) ratio of 14.9x.
That is well below the current market average P/E of 20.1x, but 0.7 standard deviations higher than AMP's historical norm.
So, what do the experts think of AMP?
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Are AMP shares a buy, hold, or sell?
On the CommSec trading platform, 11 analysts are covering AMP shares today.
The consensus rating is a moderate buy.
Six analysts say hold, and one had a moderate sell rating.
Three analysts give AMP a strong buy rating, while one has a moderate buy rating.
Macquarie has a neutral (or hold) rating on AMP shares with a 12-month price target of $1.70.
The broker said the 1H25 result missed expectations, mainly due to higher controllable costs and a lower mark on US Real Estate investments in Partnerships.
It noted that AMP had made no change to its FY25 guidance for controllable costs at about $600 million.
There was also no change to forecast margins for the Superannuation & Investments division (6.3%) and the Platforms division (4.3%).
However, AMP raised its bank net interest margins (NIMs) guidance to 1.3% from 1.26% previously.
The broker added:
There was no change to commentary on capital, with FY25 dividends pre-released and further decisions contingent on the class action, with the next catalyst in Oct '25 [3Q FY25 cashflow report].
Macquarie explained its neutral stance on AMP shares:
To become more bullish we need to see a live walk-through of the best in class technology platform.
