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2021-07-15
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American International Group price target raised at BofA on Blackstone deals
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Reiterates Buy rating.</li>\n <li>The pricing of the 9.9% stake gives a $22B valuation to AIG's L&R company, or an estimated 1.1x adjusted book, and \"~10x year-ahead earnings likely is ahead of where the market might have been valuing a standalone AIG life business,\" Shanker writes in a note to clients.</li>\n <li>\"This leads us to increase our price objective for AIG based on a higher valuation of its life business, previously valued at 7.4x earnings, but now valued at 9x earnings in our model,\" he adds.</li>\n <li>Also in the agreements announced yesterday, Blackstone will manage an initial $50B of L&R's existing investment portfolio, which will ramp up to $92.5B over the next six years.</li>\n <li>AIG's arrangement with Blackstone \"may enhance investment returns [for AIG], but may be at least partly offset by loss of shared costs with General Insurance,\" writes Credit Suisse analyst Andrew Kligerman, who reiterates Neutral rating on AIG.</li>\n <li>Credit Suisse's Kligerman \"suspects\" that AIG could book a gain on the divestiture of its U.S. affordable housing portfolio to Blackstone Real Estate Income Trust.</li>\n</ul>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmerican International Group price target raised at BofA on Blackstone deals\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-15 22:19 GMT+8 <a href=https://seekingalpha.com/news/3715563-american-international-group-price-target-raised-at-bofa-on-blackstone-deals><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>American International Group(NYSE:AIG)stockrise 2.7% and Blackstone(NYSE:BX)shares climb 2.8%after Blackstone agrees to acquire a 9.9% stakein AIG's Life & Retirement unit for $2.2B and its real ...</p>\n\n<a href=\"https://seekingalpha.com/news/3715563-american-international-group-price-target-raised-at-bofa-on-blackstone-deals\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BX":"黑石","AIG":"美国国际集团"},"source_url":"https://seekingalpha.com/news/3715563-american-international-group-price-target-raised-at-bofa-on-blackstone-deals","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1176592870","content_text":"American International Group(NYSE:AIG)stockrise 2.7% and Blackstone(NYSE:BX)shares climb 2.8%after Blackstone agrees to acquire a 9.9% stakein AIG's Life & Retirement unit for $2.2B and its real estate income trust will buy AIG's interests in a U.S. housing portfolio for ~$5.1B.\nBofA Securities analyst Joshua Shanker lifts his price target for AIG to $55 from $53; average analyst price target for AIG is $54.53. Reiterates Buy rating.\nThe pricing of the 9.9% stake gives a $22B valuation to AIG's L&R company, or an estimated 1.1x adjusted book, and \"~10x year-ahead earnings likely is ahead of where the market might have been valuing a standalone AIG life business,\" Shanker writes in a note to clients.\n\"This leads us to increase our price objective for AIG based on a higher valuation of its life business, previously valued at 7.4x earnings, but now valued at 9x earnings in our model,\" he adds.\nAlso in the agreements announced yesterday, Blackstone will manage an initial $50B of L&R's existing investment portfolio, which will ramp up to $92.5B over the next six years.\nAIG's arrangement with Blackstone \"may enhance investment returns [for AIG], but may be at least partly offset by loss of shared costs with General Insurance,\" writes Credit Suisse analyst Andrew Kligerman, who reiterates Neutral rating on AIG.\nCredit Suisse's Kligerman \"suspects\" that AIG could book a gain on the divestiture of its U.S. affordable housing portfolio to Blackstone Real Estate Income Trust.","news_type":1},"isVote":1,"tweetType":1,"viewCount":162,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":2,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/147219822"}
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