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Piper Analysts Met With AIG Management, Left Excited

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Piper Analysts Met With AIG Management, Left Excited

  • Piper Jaffray recently co-hosted a group meeting with American International Group Inc (NYSE: AIG)’s with CEO Peter Hancock and CFO David Herzog.
  • Following the event, the experts reiterated an Overweight rating on the stock.
  • Piper Jaffray fixed a $77 price target on the shares.
  • After meeting with American International Group Inc’s management team, analysts at Piper Jaffray reiterated an Outperform rating on the stock and shared a few takeaways.

    Open To Further Divestitures

    First off, they noted that, although “a split of the company along the lines suggested by recent activists is unlikely,” they do expect an increasingly simplified business over time, largely driven by further divestitures. In fact, Hancock assured there "are no sacred cows" when talking about divesting non-core assets.

    Related Link: Piper Jaffray Thinks This Peanut Allergy Biotech Could Double After Meeting Management

    Capital Return Upside Ahead

    In addition, the analysts believe there could be upside to capital return going forward – as management said it remains focused on this area, and, while never easy, they are also confident on the management’s ability to execute on cost savings. The company is aiming at a 3 to 5 percent annual reduction in operating expenses.

    Legacy Granularity Going Forward

    Finally, they pointed out that “incremental disclosure is likely to provide granularity on legacy, under-performing businesses and their ‘drag’ on total company returns.”

    Piper Jaffray analysts concluded, “While the pace and sequencing of events to unlock value may not line up neatly with recent activist calls, and they don’t expect a split any time soon, they do believe “management is more highly focused as a result of their involvement.”

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain

    Latest Ratings for AIG

    DateFirmActionFromTo
    Feb 2022Wolfe ResearchDowngradesOutperformPeer Perform
    Jan 2022BarclaysMaintainsEqual-Weight
    Jan 2022Wells FargoMaintainsEqual-Weight

    View More Analyst Ratings for AIG

    View the Latest Analyst Ratings

     

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