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This bullish call highlights what BMO views as AIG’s attractive valuation and potential for strong near-term gains.
BMO Capital’s revised price target implies roughly 26% upside for AIG over the next 12 months. Analysts value AIG at 1.26 times its 2025 adjusted book value on a stand-alone P&C basis.
“AIG trades at an inexpensive 0.85x multiple on a price-to-book value ex-AOCI basis, though less expensive at 8.60x BMO’s ~10% below-consensus 2025 EPS estimates, which de-consolidate Life Insurance,” said analysts.
“We expect the market will ‘see through’ potentially downwards EPS revisions in 2024 from the de-consol. We estimate our P&C stand-alone EPS estimates (stripping out the de-consol) are about in line with consensus,” they added.
