Credit Suisse Starts American Equity Investment Life Holding (AEL) at Neutral
- Top 10 News for 10/24 - 10/28: AT&T (T), Time Warner Make it Official; Margins Hamper Apple's Q4; Mergers Aplenty
- Wall St stumbles as FBI to review more Clinton emails
- FBI to review more emails related to Clinton's private email use
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Credit Suisse initiates coverage on American Equity Investment Life Holding (NYSE: AEL) with a Neutral rating and a price target of $20.00.
Analyst John Nadel commented, "American Equity Life is among the leaders in the growing indexed annuity market with market share between 8-14% over the past 5+ years. Annual growth in annuity account balances has averaged about 14% over the past decade, which has helped drive 13% average annual growth in operating income. AEL distributes its products primarily through an independent agency sales force although it has added a new channel more recently that focuses on distribution through banks and broker/dealers (Eagle Life). AEL shares are down 24% YTD, the worst in our coverage universe. Three key factors are contributing, in our view, including: 1) Department of Labor’s new fiduciary standard requires use of the Best Interest Contract Exemption, or “BICE,” for the sale of indexed annuities, which could significantly pressure sales particularly through retail agent distribution; 2) common equity issuance to raise new capital to support ongoing organic growth; and 3) continued downward pressure on long-term interest rates puts pressure on investment spreads, the primary driver of profit margins for fixed/indexed annuities."
Shares of American Equity Investment Life Holding closed at $18.02 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Leerink Partners Downgrades McKesson (MCK) to Market Perform
- Alphabet (GOOGL) (GOOG) PT Lifted to $1000 at Oppenheimer
- Wedbush Remains Bullish on Amazon.com (AMZN) Following 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesCredit Suisse
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!