BMO Capital lifts AIG stock target to $83, keeps Market Perform

Published 13/03/2025, 15:54
BMO Capital lifts AIG stock target to $83, keeps Market Perform

AIG’s stock performance and the upcoming investor day are of particular interest to investors, as the company outlines its financial strategies and targets. The raised price target by BMO Capital reflects a cautiously optimistic view of AIG’s ability to navigate through market challenges and improve its financial metrics over the next few years. For deeper insights into AIG’s financial health and future prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which includes detailed analysis of the company’s performance metrics, growth potential, and industry positioning. For deeper insights into AIG’s financial health and future prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which includes detailed analysis of the company’s performance metrics, growth potential, and industry positioning.

AIG’s stock performance and the upcoming investor day are of particular interest to investors, as the company outlines its financial strategies and targets. The raised price target by BMO Capital reflects a cautiously optimistic view of AIG’s ability to navigate through market challenges and improve its financial metrics over the next few years. For deeper insights into AIG’s financial health and future prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which includes detailed analysis of the company’s performance metrics, growth potential, and industry positioning.

The new price target of $83 is informed by a comparison with peers such as Chubb (NYSE:CB), which have experienced a re-rating in recent months. BMO Capital’s valuation of AIG is based on a price to property and casualty (P&C) book value multiple of approximately 1.25 times, calculated on AIG’s year-end 2025 core book value per share (BVPS) and discounted back. The valuation also takes into account AIG’s remaining stake in CRBG and deferred tax assets (DTA).

AIG’s stock performance and the upcoming investor day are of particular interest to investors, as the company outlines its financial strategies and targets. The raised price target by BMO Capital reflects a cautiously optimistic view of AIG’s ability to navigate through market challenges and improve its financial metrics over the next few years.

In other recent news, American International Group (NYSE:AIG) reported its fourth-quarter 2024 earnings, posting an earnings per share (EPS) of $1.30, slightly surpassing the forecast of $1.28, though revenue came in at $6.76 billion, just below the expected $6.79 billion. Despite the revenue miss, AIG achieved a full-year adjusted after-tax income increase of 28% year-over-year, with a target of over 10% return on equity for 2025. Analyst Vikram Gandhi from HSBC upgraded AIG’s stock rating to Buy, raising the price target to $93, reflecting confidence in AIG’s strategic actions and nearing the completion of its efficiency program, AIG Next (LON:NXT). Keefe, Bruyette & Woods also adjusted their outlook, increasing the price target to $90 while maintaining an Outperform rating, citing steady earnings growth and an aggressive capital return strategy. RBC Capital Markets reiterated an Outperform rating with an $87 price target, emphasizing AIG’s robust share buybacks and solid underwriting margins. Meanwhile, CFRA reduced AIG’s price target to $85 but maintained a Buy rating, noting the company’s ongoing restructuring efforts and positive underwriting trends. These developments indicate a strong focus on enhancing shareholder value through strategic divestitures and capital management initiatives.

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