Jefferies has increased its price target for American International Group (AIG, Financial) from $90 to $95, reiterating a Buy rating on the stock. The decision reflects the firm's confidence in AIG's ability to navigate potential earnings risks associated with tariffs, thanks to its robust capital position and defensive strategy within the property and casualty sector.
The firm highlights that auto insurers under AIG's umbrella have the capability to adjust pricing swiftly, which is crucial amid rising concerns over loss cost inflation within the commercial insurance space. While tariffs may prompt further prudence in pricing strategies, Jefferies projects that these pressures will not significantly impact AIG's first-quarter results.
Jefferies remains optimistic about AIG's prospects, especially within personal insurance lines, underscoring the firm's strategic approach to managing potential challenges in the current economic landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for American International Group Inc (AIG, Financial) is $87.39 with a high estimate of $96.00 and a low estimate of $76.22. The average target implies an upside of 7.42% from the current price of $81.35. More detailed estimate data can be found on the American International Group Inc (AIG) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, American International Group Inc's (AIG, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for American International Group Inc (AIG, Financial) in one year is $66.11, suggesting a downside of 18.73% from the current price of $81.35. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the American International Group Inc (AIG) Summary page.
