AMP Limited (ASX: AMP) saw its stock price surge 5.68% in Tuesday's pre-market trading session, following a significant upgrade from Goldman Sachs. The financial services company's shares have attracted investor attention after the prestigious investment bank raised its rating to "Buy" with a price target of $1.40.

Goldman Sachs cited several reasons for their bullish stance on AMP. Analysts expressed optimism about the company's potential for further capital releases beyond dividends and the possible monetization of equity stakes. They also highlighted AMP's strong focus on cost reduction, which is expected to continue yielding positive results. Additionally, the investment bank noted that while some residual risks remain, AMP has been making progress in resolving legacy issues.

The upgrade comes at a time when the broader Australian market is facing uncertainty. The S&P/ASX 200 Index is expected to open flat on Tuesday, despite a significant downturn in U.S. markets overnight. This makes AMP's strong performance particularly noteworthy, as it outperforms the general market trend.