Deutsche Lifts Price Target on American International Group (AIG) by 21%, Not Conventional Insurance Stock
Tweet
Share
E-mailGet Alerts AIG Hot Sheet
Price: $74.23 +1.70%
Rating Summary:
19 Buy, 17 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
19 Buy, 17 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Join SI Premium – FREE
Deutsche Bank is reiterating its Buy rating on shares of American International Group (NYSE: AIG) and is boosting its price target from $29 to $35.
The firm states AIG is not your traditional insurance company and should not be priced as one. Deutsche anticipates AIG will dividend cash from its insurance businesses for the purpose of buying back shares, while additional cash is likely to come from the sale of assets.
An analyst at Deutsche comments, "Skeptics believe that the U.S. Treasury is a hasty seller at any price above its alleged $28.73 "breakeven" price. AIG’s commencement of share repurchase suggests the government has green-lighted AIG’s capital management strategy and may have some patience. If the markets do not seem attractive for an AIG secondary offering, the U.S. Treasury will likely sell shares directly to AIG."
The firm highlights Q1 earnings will be the next catalyst for the shares. For Q1 and FY12, Deutsche forecasts EPS of $1.71 and $3.70.
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 $28.41 yesterday.
The firm states AIG is not your traditional insurance company and should not be priced as one. Deutsche anticipates AIG will dividend cash from its insurance businesses for the purpose of buying back shares, while additional cash is likely to come from the sale of assets.
An analyst at Deutsche comments, "Skeptics believe that the U.S. Treasury is a hasty seller at any price above its alleged $28.73 "breakeven" price. AIG’s commencement of share repurchase suggests the government has green-lighted AIG’s capital management strategy and may have some patience. If the markets do not seem attractive for an AIG secondary offering, the U.S. Treasury will likely sell shares directly to AIG."
The firm highlights Q1 earnings will be the next catalyst for the shares. For Q1 and FY12, Deutsche forecasts EPS of $1.71 and $3.70.
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 $28.41 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- American International Group (AIG) PT Raised to $89 at Piper Sandler
- Alpine Income Property Trust (PINE) PT Lowered to $18 at Jones Trading
- Uber Inc. (UBER) PT Raised to $96 at Tigress Financial Partners
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Deutsche Bank, Dividend, Stock Buyback, EarningsSign 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!
