AIG (AIG) PT, Estimates Raised at Nomura Securities Post Q1

Nomura Securities analyst Clifford Gallant bumped estimates and his price target on American International Group (NYSE: AIG) to $53.00 (from $50.00) following Q1 results but maintained a Neutral rating.

Gallant comments, "AIG reported operating EPS of $1.21, ahead of the Street’s $1.06 and in line with our $1.21. In P&C, premiums were up 3% (ex foreign exchange). The company continues to re-underwrite and re-weight its book, including changes in reinsurance purchasing. Driven by capital management, including both buy-backs and debt reduction, we are raising our estimates. Reflecting the better outlook, we are raising our target price to $53 from $50, at 0.7x our forward book value estimate. We remain Neutral on the shares owing to concerns over nagging quarterly reserve additions, heightened competition in its core commercial business and single digit ROEs, but also acknowledge that the company has been making steady material operating improvements."

The firm raised FY14E EPS from $4.60 to $4.72; FY15E EPS from $5.10 to $5.24

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 $52.72 yesterday.

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