NEW YORK (TheStreet) -- Shares of American International Group (AIG) were up 2% in premarket trading Tuesday morning to $32.56, after Wells Fargo analyst John Hall upgraded the shares to "Outperform" from "Market Perform."
Hall increased his 2012 earnings estimate for AIG to $3.38 a share from $2.50, and his 2013 EPS estimate to $3.06 from $2.80. He also increased his valuation range for the shares to $40 to $45, from a range of $27 to $30, "to reflect the likelihood that the company will be independent from the US Government over the course of the next year."
The federal government is looking to sell-off its 70% stake of AIG's shares, and the government also holds a $9 billion stake in Maiden Lane III, which purchased collateral debit obligations from AIG, in 2008, in order to limit the insurer's credit default swap collateral payments.
Hall said "the elimination of these last two
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV