03:05 PM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We up our 12-month target by $5 to $87, valuing AIG shares at 10.6x our '25 operating EPS estimate of $8.22 (cut today by $0.53) and 11.8x our '24 EPS estimate of $7.35 (cut by $0.35), vs. the three-year average forward multiple of 10x and peers' average of 12x. Q1 EPS of $1.77 vs. $1.63 topped the $1.66 consensus view but lagged our $1.92 EPS estimate, amid certain asset dispositions as AIG continues to streamline its operating model, but aided by 7.8% fewer shares on buybacks. General Insurance underwriting profits rose 19% on still-healthy pricing and demand trends, and Life & Retirement pre-tax profits rose 12% on 6% higher fees and wider margins. We expect '24 to be transitional as AIG continues its strategic shift, and we see underlying operating revenue growth of 5%-7% in '24 and 4%-8% in '25. EPS growth should be aided by a just-announced $10B buyback. Currently trading at 10.5x our '24 EPS estimate and yielding 2.1%, we view the shares as undervalued vs. peers, with restructuring as a catalyst.