Bank of America analysts downgraded Ameriprise Financial to Underperform from Buy on Monday, citing concerns that large-team departures and rising retention costs could pressure growth and profit margins, according to AdvisorHub.
Ameriprise shares fell 4.07 percent to $480.41 after analysts led by Craig Siegenthaler cut their price target to $445 from $570. AdvisorHub reports that the analysts pointed to increasing competition from registered investment advisers and stronger recruiting efforts by rival brokerages.
According to the Bank of America report cited by AdvisorHub, Ameriprise lost at least five teams managing a combined $12.75 billion in assets between May and September. In September, Rise Private Wealth Management, which managed $4.3 billion, and Fathom Advisors, which oversaw $1.3 billion, each left Ameriprise to launch independent RIAs.
AdvisorHub reports that the analysts also pointed to positive recruiting trends at competitors, including a reacceleration at LPL Financial.
Ameriprise has responded by offering retention bonuses structured as forgivable loans, according to an industry recruiter who spoke on condition of anonymity. AdvisorHub reports that those awards can reach approximately 100% of a broker's trailing 12-month production and have gone to at least 100 teams that expressed significant dissatisfaction.
The recruiter told AdvisorHub that many advisors who had considered leaving accepted the offers and that the strategy has worked more often than not.
The Bank of America report cited those retention packages as another potential drag on Ameriprise's wealth management margins, according to AdvisorHub. The analysts also noted that Ameriprise's transition assistance and recruiting loans increased 25% year over year in 2025.
Excluding approximately 260 advisors added from Huntington Bank, the analysts said Ameriprise would likely post a net decline in advisor headcount in 2026 after growing 0.7 percent in 2025, AdvisorHub reports.
Ameriprise, which has approximately 10,000 employee and independent brokers, stopped reporting its exact advisor headcount last year, according to AdvisorHub.
The Bank of America report also said LPL has benefited from a broader offering and a strong technology and investment platform, while Raymond James continues to compete on culture and consistency. AdvisorHub notes that LPL's advisor loan balances also have continued to rise as the firm spends to retain Commonwealth advisors and recruit externally.
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