Analyst Update: JPMorgan Chase & Co, Berkshire Hathaway Inc., and American International Group Inc

Analysts revised their ratings and price targets on JPMorgan Chase & Co (JPM), Berkshire Hathaway Inc. (BRK.A), and American International Group Inc (AIG)

by Celeste Taylor

Published on Aug 8, 2016 at 3:09 PM

Analysts are  weighing in on financial stock JPMorgan Chase & Co (NYSE:JPM), Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK.A), and insurance firm American International Group Inc (NYSE:AIG). Here's a quick roundup of today's brokerage notes on JPM, BRK.A, and AIG.

  • JPM is down 0.4% at $66.05, after a downgrade to "neutral" from "buy" from Citigroup. Specifically, the brokerage firm said "the time to add to positions is when sentiment is negative," but it believes analysts are too optimistic toward JPM, and as such, the company's "2017 and 2018 earnings estimates are about 2% too high." JPMorgan Chase & Co is currently hovering around breakeven for 2016, after overcoming its post-"Brexit" losses following a solid earnings report. There's likely a few option players hoping for more analyst-induced downside, though, with JPM's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 0.95 sitting in the 90th percentile of its annual range.
  • BRK.A is down 0.2% at $217,680.00, after a pair of mixed price-target changes. While KBW cut BRK.A's price target to $228,235 from $231,500, UBS raised its price target to $245,500 from $244,500, citing GEICO's improved second-quarter underwriting results. Berkshire Hathaway Inc. is up 10% since the beginning of the year, although the shares have run into resistance at around the $220,000 mark since April.
  • AIG is up 0.6% at $59.47, after Goldman Sachs added the insurance stock to its "Americas Conviction Buy" list, and reiterated its bullish "buy" rating. Goldman Sachs said AIG's "wedge is under the door" in terms of near-term margin improvement, and the stock "provides an increasingly attractive risk/reward." Although the stock has recovered 23% since hitting a post-"Brexit" two-year low of $48.41, AIG is still down 4% in 2016. Meanwhile, short-term options traders are much more put-skewed than usual toward American International Group Inc. In fact, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.05 ranks just 4 percentage points from a 52-week peak.
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