Analyst Joshua Shanker of Bank of America Securities reiterated a Hold rating on American International Group (AIG – Research Report), boosting the price target to $94.00.
Joshua Shanker has given his Hold rating due to a combination of factors influencing American International Group’s performance. The company’s first-quarter earnings per share exceeded expectations, largely due to lower-than-anticipated catastrophe losses. However, despite this positive outcome, AIG’s commitment to achieving a 10%+ return on equity by 2025 appears challenging, with current projections slightly below this target.
Moreover, while there is potential for the stock price to rise towards the price objective of $94, there are significant risks associated with AIG meeting its guidance. The core insurance results were mostly in line with expectations, but factors such as flat net written premiums and a shortfall in net investment income contribute to the cautious outlook. Given these mixed signals, Shanker maintains a Neutral stance, reflecting both the potential upside and the inherent risks.
According to TipRanks, Shanker is a 5-star analyst with an average return of 8.1% and a 58.95% success rate. Shanker covers the Financial sector, focusing on stocks such as Progressive, Cincinnati Financial, and Allstate.