American International Group (AIG – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Zaremski from BMO Capital maintained a Hold rating on the stock and has a $83.00 price target.
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Michael Zaremski has given his Hold rating due to a combination of factors impacting American International Group’s (AIG) performance. The company reported earnings per share that exceeded expectations, driven by stronger underwriting and investment income. However, despite this positive outcome, there are concerns about the impact of California fires on the company’s return on equity, which is expected to be slightly affected.
Furthermore, although AIG’s cost structure is more resilient compared to its peers, with policies offering less protection and thus reducing past reserving concerns, the pricing power in its primary market remains weak. This could lead to potential margin pressures, which contribute to Zaremski’s cautious stance, hence the Hold rating.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $75.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AIG in relation to earlier this year.