Argus upgraded shares of AIG (NYSE:AIG) to Buy from Hold, setting a price target of $74 per share in a note to clients Tuesday.
Analysts at the firm said the shares appear attractively valued at 8.4-times its revised 2024 EPS of $7.67, below the peer average of 9.0- to 10.0-times.
"We like the company’s leading position in global P&C and U.S. life insurance, geographic diversification, efforts to cut costs and sell non-core assets, and strong liquidity," said analysts at Argus.
"On valuation, AIG’s adjusted price/book ratio is 0.82, below the industry median. The dividend yield of about 2.25% is below the peer median of 2.6%," they added.
Analysts at Argus project an increase in the AIG dividend in 2024, along with significant share repurchases. "Based on recent non-core asset sales and improving ROE measures, we believe that a BUY rating is now appropriate," they concluded.