The AMP Ltd (ASX: AMP) share price is in the green at lunchtime trading on Thursday. At the time of writing, the share price is 0.75% higher and changing hands at $1.6725 a piece.
It's been an interesting 12 months for the stock. After plummeting 13% following its FY24 results announcement in February, the share price continued a downward spiral into mid-April before investor confidence boosted it higher again.
Just last month, AMP's share price was boosted by news that the company had reached agreements to settle legal proceedings.
At the time of writing, the share price has risen 38.2% over 6 months to give 12-month gains of 26.7%.
In a recent note to investors, Macquarie Group Ltd (ASX: MQG) has revealed what it thinks of the stock, including its outlook and target price over the next year.
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Macquarie raises its target price on AMP shares
In the investor note, the broker confirmed its neutral rating on AMP shares but raised its target price to $1.72 per share, up from $1.70 in August.
At the time of writing, that represents a potential upside of 2.9% for investors over the next 12 months.
"Neutral: To become more bullish we need to see a live walk-through of the 'best in class technology platform'," the broker said of its recommendation.
What else did Macquarie have to say?
Macquarie notes that AMP's August 2025 update on gross loans, acceptances and advances (GLAA) revealed that its GLAA balance has improved 0.6% since June this year. Most of this came in August when the balance rose 55 basis points month on month.
This compares to Macquarie's 2H25 GLAA growth expectations of 1.1% (and market consensus of a 0.9% increase) versus the prior period.
"We note AMP did not provide solid guidance for this metric in their 1H25 results," Macquarie said in its note.
The broker added: "AMP currently trades at a ~14.3x 12-month forward P/E, or ~1.6% above the three-year average of ~14.1x. This translates to a ~28% discount vs the ASX100 (compared with the three-year average discount of ~12%)."
"At the time of writing, AMP's short interest was near decade lows, at ~1.1% of total shares issued (after peaking at 9.2% in Aug '19), equating to ~4.6 days coverage."
Macquarie also revised its estimated earnings for AMP. The broker expects FY25 estimated earnings to be -0.6%, +0.7% for FY26, and +1.1% and +1.9% thereafter, "reflecting mark to markets".
