AIG shares gain the most in two months on Thursday as UBS upgrades the stock to “Buy”

Shares of American International Group Inc (AIG) rose at the sharpest daily rate in two months during the trading session in New York yesterday after UBS raised its rating on the stock to “Buy” from “Neutral” previously, as it cited that the insurers earnings might have finally reached bottom and a possible buying opportunity might be at hand.

AIG shares closed higher for a fifth consecutive trading session on Thursday. It has also been the sharpest daily surge since March 20th. The stock went up 2.01% ($1.08) to $54.79, after touching an intraday high at $55.09, or a price level not seen since May 2nd ($55.95).

In the week ended on May 13th the shares of the insurance company added a mere 0.02% to their market value compared to a week ago, which marked the third gain out of four weeks.

The stock has pared its loss to 2.16% so far during the current month, following a 2.90% surge in April. The latter has been the second gain out of six months.

For the entire past year, the shares of American International Group fell 8.77%, following a 5.39% surge in 2016.

“When Brian Duperreault joined the company about a year ago as the new CEO, we were supportive of his strategy to invest in talent and make changes to position AIG to grow,” UBS analyst Brian Meredith wrote in a client note, cited by CNBC.

“However, we recognized it would take time and that expectations needed to be reset.”

UBS also set a price target of $65 on the stock.

“The foundation is in place for long-term, sustainable improvement in the Commercial P&C business profitability”, the analyst also noted.

“While we expect some volatility in quarterly results to persist in the near term as the re-underwriting continues, we believe that consensus expectations have been reset, which should allow AIG to meet or exceed expectations”, Meredith added.

According to CNN Money, the 15 analysts, offering 12-month forecasts regarding AIG’s stock price, have a median target of $65.00, with a high estimate of $76.00 and a low estimate of $54.00. The median estimate is an 18.63% surge compared to the closing price of $54.79 on May 17th.

The same media also reported that 12 out of 20 surveyed investment analysts had rated AIG’s stock as “Buy”, while 7 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the AIG stock are presented as follows:

R1 – $54.85
R2 – $54.91
R3 (Range Resistance – Sell) – $54.97
R4 (Long Breakout) – $55.15
R5 (Breakout Target 1) – $55.36
R6 (Breakout Target 2) – $55.44

S1 – $54.73
S2 – $54.67
S3 (Range Support – Buy) – $54.61
S4 (Short Breakout) – $54.43
S5 (Breakout Target 1) – $54.22
S6 (Breakout Target 2) – $54.14

By using the traditional method of calculation, the weekly levels of importance for American International Group Inc (AIG) are presented as follows:

Central Pivot Point – $52.85
R1 – $53.68
R2 – $54.51
R3 – $55.34
R4 – $56.17

S1 – $52.02
S2 – $51.19
S3 – $50.36
S4 – $49.53