Schaeffer's Trading Floor Blog

Analyst Update: American International Group Inc, Fifth Third Bancorp, and Coach Inc

Analysts adjusted their ratings on AIG, FITB, and COH

by 8/5/2014 1:54 PM
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Analysts are weighing in today on insurance issue American International Group Inc (NYSE:AIG), regional financial firm Fifth Third Bancorp (NASDAQ:FITB), and accessories designer Coach Inc (NYSE:COH). Here's a quick look at today's brokerage notes on AIG, FITB, and COH.

  • News of AIG's strong second quarter -- as well as its nearly $1 billion investor-related settlement-- was met with a price-target hike to $55 from $53 at Nomura. Today's price action is not reflecting these upbeat developments, though, with the shares off 0.6% to trade at $52.34 at last check. Longer term, AIG has tacked on a slim 2.5% this year, prompting a divide among the brokerage bunch. At present, nine of the 18 analysts covering American International Group Inc have levied a "buy" or better rating toward the equity, with the remainder maintaining a lukewarm "hold" recommendation.

  • Susquehanna took aim at regional banks today, and for Cincinnati-based FITB, this resulted in a $1 price-target cut to $25 -- which is still a premium to the stock's consensus 12-month price target of $23.74. On the charts, Fifth Third Bancorp has put in a dismal showing since hitting a six-year peak of $23.90 in late March, with the shares off 17% to churn near $19.77. Nevertheless, expectations remain high, as evidenced by the aforementioned price targets, as well as the 12 "buy" or better ratings among covering analysts (versus nine "holds" and zero "sells"). Should FITB continue with its current trajectory, another round of bearish brokerage notes could pressure the shares lower.

  • Unlike its sector peer Michael Kors Holdings Ltd (NYSE:KORS), COH is soaring in the wake of its earnings report -- up 4.2% at last check to trade at $35.76. The strong showing caught the eye of Canaccord Genuity, Credit Suisse, and Topeka, which all raised their price targets for Coach Inc today (by $2 to $37, by $1 to $31, and by $1 to $35, respectively). Generally speaking, the brokerage bunch hasn't been too optimistic toward a stock that's shed more than 36% of its value in 2014. In fact, 74% of analysts covering the stock maintain a "hold" or worse, while the average 12-month price target of $36.30 stands at a slim 1.5% premium to current trading levels.

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