American Equity downgraded on yields pressure at Piper Sandler

Piper Sandler analyst John Barnidge downgraded American Equity to Neutral from Overweight with a price target of $48, up from $45. The Q4 results showed pressure is emerging on yields from lower mark-to-market on partnership interests that had materially benefited American Equity the last several quarters along with higher cost of money, the analyst tells investors in a research note. Piper says its fundamental thesis is not one of takeout speculation but the fundamentals of the business itself. It views the stock as fairly valued at current levels.