Keefe analysts reiterate AIG stock outperform, $90 target

Published 27/03/2025, 13:32
Keefe analysts reiterate AIG stock outperform, $90 target

On Thursday, Keefe, Bruyette & Woods analysts maintained their positive stance on American International Group (NYSE:AIG) stock, reiterating an Outperform rating with a $90.00 price target. The analysts expect AIG management to highlight the company’s strategy and growth opportunities during the upcoming Investor Day next Monday.

The focus for the Investor Day is anticipated to be on AIG’s operations following its Corebridge financial spinoff. Analysts predict that the presentation will cover AIG’s growth opportunities that remain profitable, even as certain lines show signs of decelerating pricing trends. The company is also expected to provide updates on its efforts to reduce expenses. InvestingPro data reveals the company has maintained dividend payments for 13 consecutive years, with a current yield of 1.9%.

In addition to discussing operational strategies, AIG’s management is likely to assure investors of the adequacy of the company’s overall reserves. This aspect is crucial for insurance companies, as it reflects their ability to cover potential claims.

Furthermore, AIG’s capital deployment plans are also on the agenda for discussion. Analysts anticipate that the company will outline its approach to share repurchases, which have been aggressive in the past, and touch upon the potential resumption of mergers and acquisitions activities.

The analysts’ price target of $90 is based on 11.5 times their estimated 2026 earnings per share (EPS) for AIG. This valuation reflects their confidence in the company’s future performance and the effectiveness of its strategic initiatives.

In other recent news, American International Group (AIG) has been the focus of several analyst updates and strategic developments. Keefe, Bruyette & Woods maintained their Outperform rating on AIG, setting a price target of $90.00, while emphasizing AIG’s favorable reserve development and anticipated earnings per share (EPS) of $6.25 for 2025 and $7.85 for 2026. The firm highlighted AIG’s progress in underwriting margins and aggressive capital return strategies. Meanwhile, BMO Capital Markets held a Market Perform rating, adjusting their price target to $83.00, with revised EPS estimates of $7.66 for 2026 and $8.83 for 2027, reflecting changes in capital management plans and share buybacks.

HSBC upgraded AIG to a Buy rating, raising the price target to $93, citing the nearing completion of AIG’s corporate efficiency program, AIG Next (LON:NXT), and significant strategic divestitures. Analyst Vikram Gandhi noted AIG’s potential to enhance its high-net-worth personal lines business and maintain low natural catastrophe volatility. Additionally, AIG’s ongoing share buyback program is expected to further enhance shareholder value. The company’s recent earnings report and strategic initiatives have positioned it for continued market performance, with analysts closely monitoring AIG’s ability to navigate competitive pressures and capitalize on growth opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.