Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Jefferies lowered its price target on American International Group (NYSE:AIG) to $96.00 from $98.00 on Monday, while maintaining a Buy rating on the insurance giant. The stock, currently trading at $78.13, appears undervalued according to InvestingPro analysis, with a P/E ratio of 14.64 and a dividend yield of 2.3%.
The price target adjustment follows disappointing results from AIG on an underlying basis, according to Jefferies, which noted deterioration in rate and trend commentary from previously strong levels.
The firm also highlighted that AIG’s expense ratio missed expectations, though Jefferies sees potential for improvement in the second half of 2025 and into 2026.
Despite acknowledging competitive market conditions, Jefferies believes AIG’s leading position should support adequate growth at attractive margins, with expected growth in the casualty segment ahead.
AIG remains Jefferies’ only Buy-rated name among large-cap commercial insurers, with the new price target representing a potential 26% total return.
In other recent news, American International Group (AIG) reported second-quarter earnings for 2025 that exceeded Wall Street expectations. The company achieved a notable rise in both earnings per share and revenue, showcasing strong financial performance. Despite these positive earnings, AIG’s stock saw a decline, which aligns with broader market trends and investor sentiment. In addition, CFRA adjusted its price target for AIG, lowering it from $95.00 to $90.00 while maintaining a Buy rating. This adjustment was attributed to mixed top-line trends, including a modest 3% increase in General Insurance written premiums during the second quarter. These developments reflect the dynamic factors influencing AIG, from earnings performance to analyst assessments.
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