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American International Group Inc. (NYSE:AIG) shares soared to a 52-week high, reaching a price level of $83.81, as the insurance giant benefited from a broader market rally. According to InvestingPro data, the company’s market capitalization now stands at $49.31 billion, with analysis suggesting the stock remains slightly undervalued at current levels. The climb to this peak represents a significant turnaround from previous performance, with the stock demonstrating a robust 1-year change, appreciating by 10.67%. Investors have shown increased confidence in AIG’s strategic initiatives and its ability to navigate the complex insurance market, which is reflected in the stock’s impressive ascent to this new high-water mark over the past year. InvestingPro analysis reveals management has been aggressively buying back shares, while maintaining dividend payments for 13 consecutive years - just two of the many insights available in the comprehensive Pro Research Report covering this prominent insurance industry player.
In other recent news, American International Group (AIG) has been the subject of multiple analyst updates following its latest financial developments. HSBC upgraded AIG’s stock rating from Hold to Buy, raising the price target to $93, reflecting optimism about the company’s strategic actions and nearing completion of its efficiency program, AIG Next (LON:NXT). Keefe, Bruyette & Woods also increased AIG’s price target to $90, maintaining an Outperform rating, citing the company’s solid premium growth and aggressive capital return strategy. Meanwhile, RBC Capital Markets reiterated an Outperform rating with a price target of $87, emphasizing AIG’s robust share buybacks and promising outlook for 2025.
BMO Capital Markets adjusted its price target for AIG to $83, maintaining a Market Perform rating, with expectations for improved return on equity by 2027. Conversely, CFRA reduced its price target to $85 while keeping a Buy rating, noting a slight shortfall in AIG’s fourth-quarter earnings compared to their estimates. Despite the revenue decline due to divestitures, AIG’s General Insurance and Commercial Lines written premiums showed growth in 2024.
Analysts have highlighted the company’s strategic divestitures and restructuring efforts, which have positioned AIG for a more focused future. Additionally, AIG’s ongoing share buyback program is expected to continue enhancing shareholder value. The company’s future performance will be closely watched as it navigates through challenges and capitalizes on its strategic initiatives.
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