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Investing.com - Keefe, Bruyette & Woods lowered its price target on American International Group (NYSE:AIG) stock to $91.00 from $97.00 on Tuesday, while maintaining an Outperform rating on the insurance giant.
The price target reduction follows AIG’s second-quarter 2025 earnings report and conference call, with KBW citing expectations for slower premium growth and higher core loss and expense ratios in future periods.
Despite the lower price target, KBW raised its 2025 earnings per share estimate to $6.60 from $6.35, reflecting AIG’s second-quarter outperformance relative to the firm’s expectations.
The research firm simultaneously reduced its 2026 and 2027 earnings per share forecasts to $7.90 and $8.80 from $8.10 and $9.00, respectively, though it noted these negative factors would be partially offset by larger reserve releases and lower catastrophe loss ratios.
KBW expressed confidence that AIG’s expense ratio-driven underwriting margin improvements, premium growth trajectory, and strong capital return program would drive stock outperformance over the next 12 months and beyond.
In other recent news, American International Group (AIG) reported second-quarter 2025 earnings that exceeded Wall Street expectations, showcasing a notable rise in earnings per share and revenue. Despite the positive earnings results, several firms adjusted their price targets for AIG. Goldman Sachs lowered its price target to $85, maintaining a Neutral rating, citing pressures on the underlying loss ratio, although these were somewhat balanced by higher net investment income. Jefferies also reduced its price target to $96 from $98, while keeping a Buy rating, pointing to disappointing results on an underlying basis and a decline in rate and trend commentary. CFRA followed suit, decreasing its target to $90 from $95, also maintaining a Buy rating, due to mixed top-line trends, including a modest 3% increase in General Insurance written premiums during the quarter. These adjustments reflect varying analyst perspectives on AIG’s financial performance and market positioning.
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