Ameriprise Financial's Retention Bonuses Amid Advisor Exodus Could Pressure Margins, BofA Says

10:49 AM EDT, 10/19/2026 (MT Newswires) -- Ameriprise Financial's (AMP) rehiring its own advisors with retention bonuses amid large departures, while competitors outperform on recruiting and net new assets, might impact operating margins, BofA Securities said in a Monday research report. The uptick in employee departures to start independent registered investment advisors due to the lucrative economics of RIA ownership could now be structural, according to the note. The company is due to report Q3 results on Oct. 29. BofA sald it lowered its EPS estimate for 2026, 2027, and 2028 to $45.93, $50.60, and $55.60, respectively, from $46, $51.81, and $56.97 earlier, citing lower organic growth and higher costs in wealth management. Ameriprise offers low cash sweep rates, which benefit current profits, but as AI educates investors, brokers are likely to increase cash sweep rates to eliminate this overhang, and the company could be compelled to follow, analysts wrote. The brokerage said it downgraded the stock to underperform from a buy rating and cut its price target to $445 per share from $570. Price: 485.63, Change: -15.17, Percent Change: -3.03