AMP's (ASX:AMP) balance of the business looks to be performing better than consensus expectations, Jefferies said in a Thursday note.
AMP reported that first half underlying net profit after tax is likely to fall between AU$170 million and AU$180 million, with a consensus forecast of AU$142 million, due to factors which include a stronger contribution from the China partnerships as well as improved investment income.
It will recognize AU$18 million of pre-tax carried interest in the period within Other Partnerships, relating to DigitalBridge's sale of a 51% stake in the remaining assets of a legacy AMP Capital infrastructure fund. Further upside remains possible if the remaining 49% interest is sold and the necessary criteria are met.
Mortgage securitizations so far in 2026 are signaling a more capital-light model.
The investment firm retained a buy rating to AMP and raised the price target to AU$2.07 from AU$1.75.
AMP's shares were up nearly 4% in recent Friday trade.