Zacks Initiates Coverage of AIG at Neutral
Zacks has initiated coverage of AIG (AIG) with a “Neutral” recommendation and a price target of $29.50 after the company has recovered from its 52-week low of $7 to $28. We are pleased to offer a complimentary download of Zacks’ full analysis from the Alacra Store.
Selected excerpts:
We are initiating coverage on AIG with a Neutral recommendation. The company s third quarter earnings were substantially ahead of the Zacks Consensus Estimate, primarily driven by a recovery in the value of its investments.
As part of its effort to repay the bailout money which it received in late 2008 when it had been at the edge of a collapse, the company continues to implement several restructuring initiatives.
However, the other issues that have to be dealt with head-on immediately to help revive AIG are an improvement in overall managerial efficiency, inspiring confidence among the dejected staff and withstanding consistent pressure from the U.S. government to sell assets quickly to repay debt.
Though the company stands to benefit from its scale of operations and the equity market appreciation, we remain concerned about its significant exposure to risky assets.
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