Ann: AMP successfully completes A$650 million capital raising, page-43

Well the only bit i guessed right was the 1.83 price.

Maccas downgraded amp today from 2.00 to 1.80, weird their now more positive yet downgrade after revising it last Friday, and today another revision, those block must have been them grabbing a feed.

The broker calls AMP’s earnings result “fairly sound” with strong performances in other businesses offsetting pressures in wealth management. The focus was on the probable sale of Life at a rebased price, a $650m equity raise that will be some -15% dilutive and $300m of targeted cost-cuts by FY22.

The broker is now more positive at the current stock price but highlights a high degree of execution risk and several years before cost-outs make their mark. Neutral retained, target falls to $1.80 from $2.00.

Sector: Insurance.

Target price is $1.80.Current Price is $1.93. Difference: ($0.13) – (brackets indicate current price is over target). If AMP meets the Macquarie target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).