Citi analyst Matthew Heimermann maintained a Hold rating on American International Group today and set a price target of $85.00.
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Matthew Heimermann has given his Hold rating due to a combination of factors related to AIG’s strategic positioning and merger prospects. He believes that a large-scale combination with another major insurer would likely work against AIG’s interests, as the operational disruptions, cultural frictions, and integration challenges could outweigh any cost efficiencies. In his view, such a deal might end up benefiting competitors more than AIG itself, as business opportunities and key personnel could migrate elsewhere during a complicated integration. Moreover, he sees little in the way of compelling strategic benefits—whether in product mix, distribution reach, geographic footprint, or technology—that would justify a transformative merger with another large, similar company.
Given this assessment, Heimermann does not view speculative M&A as a credible catalyst to materially enhance shareholder value, particularly since similar rumored large transactions in the industry have failed to materialize in the past. With recent media coverage fueling investor curiosity about potential deals, he addresses the topic specifically to temper expectations around a transformative transaction. Coupled with his forecast of a slightly negative expected share price return, these considerations lead him to a more balanced stance rather than a bullish view, resulting in a Hold recommendation on AIG.
In another report released on December 16, Mizuho Securities also initiated coverage with a Hold rating on the stock with a $84.00 price target.