FBR Capital Starts AIG (AIG) at Outperform; Now More Boring But Cheap
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Price: $74.93 -0.04%
Rating Summary:
19 Buy, 17 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
19 Buy, 17 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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After the close Thursday, FBR Capital initiated coverage on American International Group (NYSE: AIG) with a Outperform rating and $44 price target.
"While the call on AIG is shifting to more of a typical insurance story, versus the massive buyback, divestiture, and U.S. Treasury sale catalysts from 2012, the company still screens as a well-above-average capital deployment story in our analysis," the analyst said.
Valuation is attractive, according to the firm, particularly when giving credit for the value of the NOL, which the estimate has an NPV of ~$7 per share.
FBR said while their 2015E ROE ex-AOCI is closer to ~7%, versus management's 10% goal, valuation under 60% of BV keeps the bar low, and they do not see any obvious red flags on the operating side that should impede the accretion of capital and NOL management in 2013.
The firm also sees larger institutional ownership of the stock. "While much frothier sentiment is concerning, AIG's reemergence as the mega-cap U.S. insurer likely will continue to attract broad new global institutional ownership."
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 $35.76 yesterday.
"While the call on AIG is shifting to more of a typical insurance story, versus the massive buyback, divestiture, and U.S. Treasury sale catalysts from 2012, the company still screens as a well-above-average capital deployment story in our analysis," the analyst said.
Valuation is attractive, according to the firm, particularly when giving credit for the value of the NOL, which the estimate has an NPV of ~$7 per share.
FBR said while their 2015E ROE ex-AOCI is closer to ~7%, versus management's 10% goal, valuation under 60% of BV keeps the bar low, and they do not see any obvious red flags on the operating side that should impede the accretion of capital and NOL management in 2013.
The firm also sees larger institutional ownership of the stock. "While much frothier sentiment is concerning, AIG's reemergence as the mega-cap U.S. insurer likely will continue to attract broad new global institutional ownership."
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 $35.76 yesterday.
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