By 11:30 a.m., shares in the French group, which ranks among the world's top 10 players, were down approximately 0.5% after sliding as much as 2.6% earlier in the session to trade near their lowest levels since the start of the year.

For the first quarter, Citi's teams expect assets under management (AUM) of approximately 1,960 billion euros, 1% below consensus, with pre-tax profit projected at 440 million euros, missing market expectations by 5%.

The U.S. bank explained that it expects solid inflows to be more than offset by unfavorable equity market movements.

According to Citi, the planned IPO of the management joint venture with SBI in India could serve as a potential catalyst, as could further M&A (mergers and acquisitions) activity. Nevertheless, the bank maintained its "Neutral" rating on the stock while trimming its price target from 84.5 to 79.5 euros.

"Based on our new forecasts, the stock trades at approximately 10 times expected 2027-2028 earnings, which is in line with its historical average. It is therefore not expensive, but not particularly cheap either, especially as top-line growth remains somewhat sluggish despite relatively solid earnings growth," the firm noted.

Citi also justified its downward revision by the prospect of rising interest rates and the recent sector-wide de-rating in equity markets.

Increased caution at Morgan Stanley

In a note released this morning, Morgan Stanley analysts indicated they have also slightly revised down their earnings estimates for 2026-2028, citing weaker-than-expected market performance and moderate inflows, particularly from the retail segment.

According to data collected by Morningstar for the first quarter, AUM is expected to decline by approximately 2% per year over the 2026-2028 period. This led the New York-based firm to lower its revenue targets by about 2% to 3% and its earnings forecasts by around 4% for the period.

Despite these downward revisions, analysts emphasized that the group's underlying growth remains robust. However, they also argued that Amundi's valuation is currently in line with its sector average, with a price-to-earnings ratio of 9.5 times estimated 2027 earnings. Consequently, they adjusted their price target to 83 euros, down from 86.6 euros previously.

MS noted that the stock is neither cheap nor expensive, reflecting a neutral valuation, but cautioned that growth momentum remains moderate, which could limit upside potential in the short term. Its recommendation remains "Equal-weight."