In a report released yesterday, Bob Huang from Morgan Stanley maintained a Hold rating on American International Group, with a price target of $84.00.
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Bob Huang has given his Hold rating due to a combination of factors related to both opportunity and uncertainty at American International Group. He notes that the company is entering a leadership transition, with long-time CEO Peter Zaffino moving to Executive Chair and industry veteran Eric Andersen stepping in as CEO-elect, and believes that how this new team manages the softer underwriting environment and more complex risk landscape will be critical. While AIG has built a solid foundation under Zaffino—delivering several years of underwriting profitability, strengthening the balance sheet, and prioritizing disciplined capital returns—Huang sees execution risk as the company navigates the current soft market and evolving industry challenges. The stock’s current price and valuation appear to already reflect much of the progress made, which limits near-term upside in his view.
At the same time, Huang highlights that AIG’s disciplined underwriting culture and improved financial profile provide a degree of downside support, arguing against an outright negative rating. He also flags that the firm’s involvement in strategic transactions, such as investments in Convex Group Limited and Onex Corporation, could be value-enhancing over time but remain subject to regulatory and closing uncertainties. Given these mixed elements—proven past improvements, pending leadership transition, and exposure to a challenging underwriting cycle—Huang concludes that the risk/reward profile is balanced at present. This balance between solid fundamentals and meaningful execution and market risks supports his decision to maintain a Hold stance rather than recommending aggressive buying or selling of the shares.
In another report released today, TipRanks – OpenAI also reiterated a Hold rating on the stock with a $90.00 price target.