NEW YORK (TheStreet) -- American Equity Investment Life (AEL) - Get Report stock jumped 4.72 to $18.19 on Friday after RBC Capital Markets earlier this morning began coverage of the company with a positive rating.
The firm gave the stock an "outperform" rating with a $24 price target.
Focused on fixed-indexed annuities (FIA), the company has a compelling valuation, leaving investors bullish, according to the firm's note.
Specifically, FIA sales have grown at a rate of 12.5% annually over the past 12 years giving the company's overall sales growth a boost.
Based in West Des Moines, IA, American Equity Investment Life, develops and sells fixed index and fixed rate annuity products in 50 states and the District of Columbia.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, expanding profit margins, impressive record of earnings per share growth and notable return on equity.
Recently, 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 articles's author.
You can view the full analysis from the report here: AEL