NEW YORK (TheStreet) -- American International Group (AIG) - Get Report stock is up by 2.34% to $54.65 in early-afternoon trading on Wednesday, following an upgrade to "buy" from "neutral" at Janney earlier today.
Management now has a better understanding of the challenges ahead as well as "the resolve to improve returns that heretofore was lacking," the firm wrote in a note, Barron's reports.
These challenges include uneven operating profits during the next couple of years, earnings headwinds such as reduced investment income from various restructuring activities, and the need to balance its various constituencies, according to Janney.
Investors seem to have taken a "show me" attitude toward the stock, the firm added, Barron's notes.
"We have been clear in our view that the best way for AIG to enhance shareholder value is to improve its fundamental operating returns and we think the company has taken some meaningful steps along that path," Janney continued.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
AIG's strengths such as its solid financial position based on a variety of debt and liquidity measures that we have evaluated are countered by weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: AIG
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.