American International Group Inc shares fell to a 13-year low on Monday after Credit Suisse lowered its price target and forecast a huge loss for the insurer, mainly due to higher losses from its derivatives business.
AIG shares dropped $1.08, or 5.4 percent, to $18.79 on the New York Stock Exchange. The last time they were so low was August 1995.
"We are lowering our price target from $30 to $22 to reflect what we view to be a heightened risk profile owed to uncertainty regarding ratings, the size of a potential capital raise and the ultimate cost of a de-risking strategy especially for its credit default swap (CDS) business," Credit Suisse said.
"De-risking strategy," that's a new one.
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