Ameriprise: Increasing Our Fair Value Estimate to $450; We Expect Continued Growth in 2024

Ameriprise Financial has transformed itself into an investment management powerhouse, with about $1.4 trillion in total assets under management and advisement and around 10,000 financial advisors at the end of 2023. The firm gradually shifted away from insurance and emphasized asset and wealth management operations more. Columbia Threadneedle Investments, the firm's global asset-management business, turned Ameriprise into a contender in the global asset-management industry with around $600 billion of assets under management, or AUM. About 80% of revenue comes from the company's wealth and asset management segments which should help the company generate operating margins consistently in the mid-20s compared with midteens to low-20s historically.