Increasing Our Fair Value Estimate for Ameriprise to $338

We are increasing our fair value estimate for narrow-moat-rated Ameriprise Financial to $338 per share from $262, which implies around a 13 times P/E multiple of 2023 projected earnings and about 7 times tangible book value. Almost all the increase in our fair value estimate is from increasing our forecast for the company's operating margins to around 23% from the high-teens. Historically, the company had operating margins in the midteens to low-20s. After reducing its insurance operations and expansion of its wealth and asset management businesses, we believe that the company should be able to maintain low- to mid-20s operating margins going forward.