Argus Upgrades AIG to ‘Buy’ Status, Citing Attractive Valuation
November 25, 2023
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AMERICAN ($NYSE:AIG): The company offers a wide range of insurance and financial products and services, including auto, life, accident and health insurance, retirement services, mortgage finance, asset management, and more. Recently, Argus Research upgraded AIG to a Buy rating, citing its attractive valuation. This upgrade is reportedly due to the company’s improved fundamentals, as well as the attractive value of its shares compared to its peers. As a result, investors may be drawn to AIG as a potential investment opportunity. Furthermore, the company’s continued focus on improving operational efficiency has enabled it to increase its profitability in recent quarters.
Therefore, Argus believes that AIG offers an attractive investment opportunity for those looking to capitalize on its current discounted price. Overall, Argus’ upgrade of AIG to a Buy rating is an indication of the company’s improved fundamentals and attractive valuation. Given its various product offerings and commitment to operational efficiency, AIG may be an appealing option for investors looking for a sound investment opportunity.
Stock Price
The stock opened at $64.5 and closed at $65.0, representing a 0.9% increase from its previous closing price of 64.4. This news further underscored the company’s strength in the financial sector, as it continues to increase its share value and drive profits. In light of the upgrade, investors are bullish on the stock and analysts are expecting AIG to reach new highs in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for American International. More…
| Total Revenues | Net Income | Net Margin |
| 51.03k | 4.12k | 8.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for American International. More…
| Operations | Investing | Financing |
| 4.86k | -5.43k | 604 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for American International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 521.52k | 478.31k | 56.95 |
Key Ratios Snapshot
Some of the financial key ratios for American International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.6% | – | 14.0% |
| FCF Margin | ROE | ROA |
| 9.5% | 10.8% | 0.9% |
Analysis
GoodWhale conducted an analysis of AMERICAN INTERNATIONAL‘s wellbeing and the results were interesting. According to the Star Chart, AMERICAN INTERNATIONAL is strong in dividend, but weak in asset, growth, and profitability. AMERICAN INTERNATIONAL has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that it is likely to pay off debt and fund future operations. We classify AMERICAN INTERNATIONAL as a ‘cow’, a type of company we conclude that pays out consistent and sustainable dividends. Investors who are looking for a steady dividend return and less risk may be interested in such a company. AMERICAN INTERNATIONAL may be a suitable option for those investors who prioritize a more reliable dividend income, despite the lack of strong growth potential or high assets. More…
Peers
Its competitors include Old Republic International Corp, UNIQA Insurance Group AG, and Zavarovalnica Triglav DD.
– Old Republic International Corp ($NYSE:ORI)
Old Republic International Corp is a holding company that operates in three segments: Insurance Group, Title Insurance Group, and the Commercial Group. The Insurance Group offers property and casualty insurance products, such as automobile and homeowners insurance, to individuals and businesses in the United States. The Title Insurance Group provides title insurance and related real estate products and services in the United States. The Commercial Group offers a range of products and services, including surety bonds, commercial credit insurance, and commercial title insurance.
– UNIQA Insurance Group AG ($LTS:0GDR)
UNIQA Insurance Group AG is one of the leading insurance groups in Austria and Central and Eastern Europe with a market share of around 15 per cent. The Group is represented in more than 20 countries with around 9,000 employees. In the 2019 financial year, UNIQA generated gross premiums written of EUR 5.6 billion. UNIQA Group is part of UNIQA Insurance Group AG.
– Zavarovalnica Triglav DD ($LTS:0KFO)
Triglav is the largest Slovenian insurance company and one of the leading insurers in the Adriatic region. It has been operating for over 125 years and offers a wide range of insurance products for individuals, families and businesses. Triglav is also active in the field of asset management. The company’s share is listed on the Prague and Ljubljana Stock Exchanges.
Triglav’s market capitalization is 726.75 million as of 2022. The company’s return on equity is 10.44%. Triglav is a leading insurer in the Adriatic region with a wide range of insurance products for individuals, families and businesses. The company is also active in asset management.
Summary
American International Group (AIG) has recently received a ‘Buy’ rating from Argus, a leading investment analysis firm. This positive view is based on AIG’s attractive valuation, as the current stock price appears to be a good entry point for potential investors. Argus believes that AIG is currently undervalued and that investors should take advantage of its low prices while the company’s fundamentals remain strong.
AIG has a strong balance sheet and a long history of providing solid returns for investors. With the support of Argus, AIG is a stock worth considering for any investor looking for potential upside in the current market.
