American International Group (AIG) PT Raised to $89 at BMO Capital

BMO Capital analyst Michael Zaremski raised the price target on American International Group (NYSE: AIG) to $89.00 (from $88.00) while maintaining a Outperform rating.

The analyst commented, "AIG's valuation appears inexpensive using outer year 2026E P/E (AIG at ~8.8x vs. peers >10x); 2026 is the key year in focus because AIG is still monetizing its multi-billion dollar life insurance stake, plus it's undergoing a longer-term cost efficiency program. Therefore, 2026 is when we expect AIG's excess capital to be fully deployed and its expense levels to be tighter vs. peers. The big question is what discount rate (i.e., confidence) one puts on the estimated >40% EPS uplift from 2023-2026E (see Exhibit 1 for details + commentary)."

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