Cautious Hold Rating on AIG Amid Mixed Earnings and Growth Concerns

Bank of America Securities analyst Joshua Shanker has reiterated their neutral stance on AIG stock, giving a Hold rating on July 22.

Joshua Shanker has given his Hold rating due to a combination of factors impacting American International Group’s performance. The company’s second-quarter earnings per share exceeded expectations, primarily due to lower catastrophe losses and increased net investment income. However, these positive aspects were somewhat offset by higher losses in other operations, driven by increased interest expenses and a higher effective tax rate.
Despite the favorable earnings report, there are concerns regarding the underlying loss ratios, which were higher than anticipated across all segments. Additionally, the decline in net premiums written, particularly in the Global Personal segment, raises questions about future growth prospects. Although the price objective suggests some upside potential, the risks associated with AIG’s ability to meet guidance lead to a cautious stance, justifying the Hold rating.

In another report released on July 22, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $83.00 price target.

AIG’s price has also changed slightly for the past six months – from $74.580 to $79.060, which is a 6.01% increase.