Efficient markets are hard at work as a big bounce for AIG (AIG +2.8%) has the stock erasing nearly all of its knee-jerk post-earnings loss from yesterday.
Summing up a good bit of sell-side sentiment, Deutsche's Josh Shanker says the "beat" was thanks to better-than-expected numbers from capital market sensitive items. He sees "normalized" core EPS at closer to $0.79, well shy of his team's estimate of $0.84. "The slow progress on earnings growth is key to our Hold recommendation."
Those with more skin in the game at Seeking Alpha acknowledge a bit of disappointment with operating results, but also note a sizable gain in book value - up 4.6% Q/Q to $71.77 per share - and the continued wide discount to book the stock trades at.
"As long as book value is growing and AIG undertakes efforts that will result in better underwriting discipline, AIG still makes a very interesting value proposition," writes Achilles Research.