AIG upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst Jimmy Bhullar upgraded AIG to Overweight from Neutral with a price target of $89, down from $93. The company offers “outsized” earnings growth, capital flexibility and a low valuation, the analyst tells investors in a research note. The firm says its fundamental outlook for AIG’s business has become “progressively more constructive” in recent years, primarily due to the improvement in the company’s underwriting, reserves, and risk management. JPMorgan believes consensus earnings forecasts have become more reasonable, while the stock’s relative valuation has improved following its recent underperformance. It feels AIG’s valuation is “very compelling” especially accounting for its deferred tax asset and its above-average earnings growth in the next few years.