AIG (AIG) Bullish Stance Reiterated at FBR Capital Following CFO Meeting

FBR Capital analyst Randy Binner reiterated an Outperform rating and $62 price target on American International Group (NYSE: AIG) following meetings with management, saying the excess capital story keeps them positive despite reverse and expense headwinds.

Binner commented, "We recently hosted a meeting with AIG CFO David Herzog and institutional investors and came away with several key updates, which, on balance, we believe are positive. We maintain our Outperform rating and $62 price target. Updates on the key debatable points of reserve adequacy and expense improvement were status quo, but our view of excess capital remains favorable. Our constructive view on the ultimate outcome of non-bank SIFI rules, in combination with AIG's lower asset leverage (meaning AIG is likely less exposed to any regulatory news flow that tacks in the direction of Basel II rules), leaves us comfortable with AIG as a $5B–$6B annual buy-back story. We do not believe that potential risks from the Starr International v U.S. case would affect buy-back decisions for some time."

For an analyst ratings summary and ratings history on American International Group click here. For more ratings news on American International Group click here.

Shares of American International Group closed at $55.10 yesterday.

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