UBS Staying 'Neutral' on AIG (AIG), Citing Gov’t Stock Overhang and P&C Pressures

UBS maintains a 'Neutral' on AIG (NYSE: AIG), PT lowered from $39 to $30.

UBS analyst said, "AIG cited four key levers to an “aspirational” 10%+ operating ROE by ’15 - In recent investor presentations, AIG highlighted four key ROE levers towards an “aspirational” 10%+ by ’15, from a normalized 6.2% in ’10. These include: a) 100-120 bps improvement (or $4-5B of incremental pre-tax op earnings) from “global opportunities”; b) 20-40 bps from investing excess liquidity; c) 150-200 bps from $25-30B of capital mgmt; and d) 40-60 bps from $1B p-t in cost saving initiatives. But in our view, a 10%+ operating ROE by ’15 seems too ambitious...particularly reaping the full benefits of “global opportunities” by ‘15."

For more ratings news on AIG click here and for the rating history of AIG click here.

Shares of AIG closed at $28.01 yesterday.

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