This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

AIG Buybacks to Slow in 2013: Analyst

NEW YORK ( TheStreet) -- AIG (AIG - Get Report) share repurchases were a big driver of the stock's 52% rise in 2012, but that trend will slow down in 2013, according to Wells Fargo analyst John Hall, who lowered his recommendation on the stock to "market perform" from "outperform" in a note published Thursday.

Hall writes that share repurchases were "a considerable source of shareholder value creation in 2012," but he expects buybacks to take a back seat in 2013.

"AIG has made clear that its near-term focus for capital management involves improving the company's interest coverage ratio," Hall states. He notes that AIG sold its remaining stake in Hong Kong-based AIA Group in December, but argues "much of these proceeds" will go to paying down debt or lowering its interest expenses. Hall lowered his expected valuation range on AIG shares to $38-40 from $44-49, while also trimming earnings estimates. AIG shares were down 0.06% in early trading Thursday to $35.74.

AIG has generated headlines in recent days as its board contemplated whether to join a lawsuit against the U.S. government and the Federal Reserve Board of New York and government by former Chairman and CEO Hank Greenberg contesting the terms of the bailout of the insurer in 2008. The company announced Wednesday afternoon, shortly before the market closed, that it would not join the suit.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AIG $54.01 -0.30%
AAPL $123.22 -0.82%
FB $83.30 0.35%
GOOG $548.13 -1.30%
TSLA $185.15 -2.80%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs