Very conservative target considering the AMP story is starting...

Very conservative target considering the AMP story is starting to take an interesting up-turn. On pure dividend yield growth this price target should be achieved as the dividend yield is currently 4.28 so any increase in earnings should move the share price further. The final/interim dividends over the last 12 months have been the lowest over a number of years so its a low base for the management team to exceed. The negative for the business is the insurance side and this may still weigh on the price in the short term but will likely come good as the new management turns this area around with a much more conservative approach to its reporting and a more diversified revenue streams. The key drivers of the growth will be the largest adviser network in the country starting to sell AMP investment platforms and with the exposure to share market growth through this it will provide revenue increases without necessarily increasing costs given the fixed nature of the underlying operations that support this. This is an annuity style of income that wealth businesses can reap and AMP's creation of a wealth distribution/product silo ties in the value chain. The cost structuring program announced is well underway and without the headache of a large acquisition to worry about there should be nothing to distract from organic growth IMO.