Goldman Sachs Raises Price Target on AIG (AIG), But Remains on the Sidelines

Goldman Sachs raised its price target on American International Group (NYSE: AIG) from $29 to $31, but maintained their Neutral rating.

The firm said they are becoming "a bit more constructive" on AIG after several important actions, including the sale of $6B in AIA shares, the wind-down of its $8.4bn special purpose vehicle, the disposition of the Maiden Lane II portfolio, and the repurchase of $3bn in shares.

Goldman said these actions happened faster than they expected, although they still see the remaining 70% Treasury stake as an overhang which will limit upside.

"Since the March 5th announcement regarding the sale and placement of $6bn in AIA shares, AIG’s shares are down 7%," Goldman's analyst notes. "We expect that a similar reaction should Treasury continue to sell stock in the near term." Mid-September is likely the next date for AIG to participate in any Treasury offering when the lockup on the remaining AIA shares expires.

On pricing, Goldman said their survey shows that pricing trends in core commercial lines continue to improve.

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 $28.15 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Viking Holdings (VIK) PT Raised to $82 at Mizuho
• Walmart (WMT) PT Lowered to $125 at JPMorgan, Overweight Rating Maintained as 'Short Case Feels Greedy'
• Stella International Holdings (1836:HK) (SLNLF) PT Lowered to HK$10 at Macquarie