American International Group, Inc. (NYSE: AIG) is under far less pressure right at the open than many might have expected. While it settled some of its Hank Greenberg issues last week, the stock was given a fairly ugly analyst call this morning. Sanford Bernstein lowered its under-market price target of an already-ugly $20 down to $12 in a research note. The official rating was ‘reiterated as Underperform’ in this call.
The call notes additional delinquencies in loss reserves worth approximately $11 billion and that may bring more uncertainty for common holders and the US Government’s investment. One issue mitigating some of the losses or risks this morning is wire reports that the company may soon have a bid for its aviation units.
AIG is actually holding up better than you might expect on such an ugly analyst outlook. AIG was down roughly 4% on Friday and was trading down another 3.5% earlier this morning before the open. After 15 minutes since the market open, AIG is down 3% at $32.30, but this was briefly at $33.00 after the open.
Jon C. Ogg
November 30, 2009
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
