The AMP Ltd (ASX: AMP) share price was crunched last week. It's down by 20% since 11 February 2026, as the chart below shows, after announcing its FY25 result for the 12 months to 31 December 2025.
When a business as large as AMP falls that hard, it could be an extremely attractive, contrarian opportunity to take advantage of.
While the underlying profit growth was strong, investors were seemingly not pleased with guidance and margins.
The company reported that underlying net profit after tax (NPAT) grew by 20.8% to $285 million, with platforms underlying net profit growth of 9.3% to $106 million, superannuation and investments (S&I) underlying net profit growth of 14.8% to $62 million and AMP Bank underlying net profit declined 9.8% to $55 million.
Let's take a look at experts at broker UBS think of the business.
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What happened with the result?
UBS noted that while underlying net profit was in line with expectations, there were a few factors driving the sell-off.
The broker said that compositionally, the result missed by around 10% in the second half of FY25 across the operating divisions due to broad-based revenue pressure, a flat (and weaker than expected) dividend per share and there was global platform sector weakness.
AMP's platforms and S&I both missed on the revenue margin guidance due to fee tiering and capping and mix-related fee pressure from the rise in managed accounts. Additionally, the bank missed by 16% on expectations because of a lower net interest margin (NIM), with AMP Bank GO contributing an FY25 loss of $10 million.
The positive offset to the operating miss was a large half over half step-up in China partnership income (with $45 million compared to $27 million in the first half of FY25).
Is the AMP share price a buy?
The broker UBS thinks the business is a buy, with a price target of $1.75, suggesting a sizeable potential rise from here.
UBS wrote when the AMP share price was $1.28:
However, given relatively modest FY26 EPS cuts (-4%), we now see value with the stock trading below NTA ($1.33/shr) at an ~11.4x PE despite offering a 10% pa EPS growth outlook. This excludes potential upside from capital management noting AMP's $287m of surplus CET1 and scope to divest non-core partnership investments (PCCP $193m). We reduce our PT to $1.75, and upgrade our rating to Buy (from Neutral).
The broker's forecasts suggests the business is trading at less than 13x FY26's estimated earnings.
