-- AMP (ASX:AMP) reported "encouraging" first-quarter results as momentum accelerated across its core business units, and AMP Bank recorded only a minor decrease in loan balances from the linked quarter, Jefferies said in a Thursday note.
The company's North wealth management platform saw a robust AU$1.1 billion of new inflows, representing the fourth consecutive quarter of net inflows topping the AU$1 billion mark. The Superannuation and Investments division posted "a continued and meaningful improvement" as net cash outflows contracted to AU$80 million, Jefferies said.
In its international businesses, the outlook for AMP's China Life ventures is buoyed by structural demographic tailwinds, while AMP New Zealand performed well with positive new cash inflows of AU$41 million in the quarter, the equity research firm said.
The company's AU$150 million on-market buyback is now included in forecasts, which Jefferies estimates to be around 4% accretive. Including overall forecasting adjustments, the firm's EPS forecasts for AMP increase 6% for 2026 and 8% for 2027.
Jefferies maintained a buy rating on AMP and raised its price target on the company's shares to AU$1.75 from AU$1.50.