AIG Downgraded, Price Target Cut at Credit Suisse (AIG)

Sep. 8, 2009 (Baystreet.ca) --

Embattled insurance giant American International Group, Inc. (AIG) caught a big downgrade on Tuesday from analysts at Credit Suisse.

The analyst cut its rating on AIG to "Underperform" from "Neutral," and slashed its price target on the stock to $15 from $30. AIG shares had closed at $40.05 on Friday.

Suisse also set its 2009 and 2010 EPS estimates -$13.98 and $5.70, respectively.

AIG shares fell $3.40, or -8.4%, in morning trading Tuesday.

The Bottom Line
Shares of AIG are way off 52-week split-adjusted highs of $455 a share. The stock has near-term technical support in the $28-$32 price area. if the shares can firm up, we see near-term overhead resistance around the $50-$56 price levels. We do not currently rate this former dividend-paying stock, but we do follow the company closely.

American International Group, Inc. (AIG) does not currently pay a dividend.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.