Seeking Alpha

AIG no longer a Buy at Deutsche

  • "Elevated expenses continue to impose a ceiling on the profitability of the property and casualty business," says analyst Joshua Shanker, cutting AIG to Hold from Buy with price target reduced to $55 from $58. "Management indicates that Fuji unit integration costs will keep expenses high through 2014, which suggests that core ROE may stagnate at around 6% for the foreseeable future."
  • "While we believe cash flow will ultimately exceed core and GAAP EPS, we believe incremental buyers will need to see additional combined ratio improvement to be motivated to purchase AIG."
  • Shares -1% premarket
  • Monday: Leon Cooperman remains a buyer, seeing ROE of 10% and EPS of $6 per share
Comments (3)
  • campito
    , contributor
    Comments (46) | Send Message
    Great news more buybacks in the high forties to low fifties.


    Thanks DB for the shortermism!


    Long AIG for the 'foreseeable' future!
    12 Mar, 07:45 AM Reply Like
    , contributor
    Comments (1801) | Send Message
    Wonder how many shares deutsche will accumulate for their own / their big clients accounts over the next few weeks ?
    And then, a few months from now call an "all clear" to buy.


    Count on it, as all these "analysts" houses think we're stupid.


    Imo, BUY AIG on any weakness.
    12 Mar, 09:22 AM Reply Like
  • bentleyj2424
    , contributor
    Comments (19) | Send Message
    Buy AIG. May earnings statement alone will drive this stock price up some in the short term. Along with interest levels that coincide with greater profits, AIG will look like a steal around $50 in the next 10 years. Along with the current %1 dividend, there are much worse places to put your money. IMO
    25 Mar, 02:16 PM Reply Like
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