American International Group Inc. (NYSE:AIG): Goldman Sachs Upgrades The Stock To A “Buy” Rating

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Dallas, Texas 05/22/2014 (FINANCIALSTRENDS) – The stock of American International Group Inc. (NYSE:AIG) recently received an upgrade from equities research analysts at Goldman Sachs Group Inc. (NYSE:GS). The analysts yesterday assigned a “buy” rating for the stock, updating from their previously set “neutral” rating. The analysts also updated their price target for the stock to $63 from their previously set target price of $50. The upgrade was assigned in response of a significant excess capital generated by the global insurance company which analysts expects to be used for buybacks or even to invest back into the company.

Analyst Speak:

Michael Nannizziand team, analysts at Goldman Sachs, explained that American International Group Inc. (NYSE:AIG) could generate high capital and now investors should also change their focus to capital generation from capital deployment. This well-positions the global insurance company to positively deploy capital into its core businesses, if the company is not considering any large scale buybacks in short term. The team mentioned that their upgrade is based on the view that the company’s deployment option is largely under appreciated by investors.

Rating Updates:

The stock of American International Group Inc. (NYSE:AIG) has also received comments from many other analysts in recent past. Investment analysts at Nomurareiterated a “neutral” rating for the stock and upgraded their price target from $50 to $53 for the stock of AIG. S&P Equity Research’s analysts also reaffirmed a “buy” rating for the stock of AIG. Equities research analysts at Zacks also reaffirmed a “neutral” rating for the stock and upgraded their price target for the stock from $53 to $55. Earlier, analysts at Zacks downgraded the stock from an “outperform” rating to a “neutral” rating.

The stock of AIG has been assigned a “hold” rating by eleven research analysts; a “buy” rating by six research analysts; and a “strong buy” rating by one research analysts. The stock currently has an average rating of “hold” with a consensus price target of $53.13.

Stock Update:

Yesterday, the stock closed at $53.51, gaining 1.94% from its previous close.