Barclays Maintains an 'Equalweight' on American International Group (AIG); Management Meeting Takeaways

Barclays maintains an 'Equalweight' on American International Group (NYSE: AIG) price target of $25.00.

Barclays analyst says, "AIG views its balance sheet as strengthened and is focused on an ROE recovery, although we expect its ROE to remain below its life insurance and P&C peers."

"AIG reiterated its aspirational goal of a 10% ROE in 2015 (up from our estimate of a 6% prospective normalized ROE), which we view as optimistic. AIG expects to achieve this result in part due to deploying $25-$30bn of capital generated from its P&C and life companies (unclear how this would be achieved in our view) as well as through divestitures of non-core businesses, and improved earnings, particularly at Chartis. The company currently has a $1bn share repurchase authorization, which it could take a disciplined approach to deploying."

"AIG trades at 0.50x BV, which is below peers, but 8.4x 2012E EPS of $2.50, which is above peers."

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 $21.01 yesterday.

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