NEW YORK (TheStreet) -- Shares of American International Group (AIG) are falling 0.32% to $62.37 in Tuesday's early morning trading session after analysts at Deutsche Bank downgraded the company to "hold" from "buy" with a price target of $64.
"Significant outperformance in 1H15 has brought the stock to be largely where we think it will trade this time of year," analysts said.
While analysts believe that there will be a multi-year upside in the stock, near-term opportunity has declined materially due to AIG's rally, they added.
Additional risks include exposure to significant losses associated with major catastrophes, like the 1Q11 Tohoku earthquake and smaller events like the 2Q11 tornadoes.
American International Group provides insurance products and services for commercial, institutional, and individual customers in the U.S., the Asia Pacific, and internationally.
Separately, a U.S. judge on Monday awarded no damages to the company's investors led by former CEO Maurice "Hank" Greenberg in their lawsuit against the U.S. government, despite finding that the U.S. Federal Reserve "exceeded its authority in the insurer's 2008 bailout," Reuters reported.
TheStreet Ratings team rates AMERICAN INTERNATIONAL GROUP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN INTERNATIONAL GROUP (AIG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."