NEW YORK, June 6 (Reuters) - American International Group shares appear to be too expensive, while its junior debt looks like a more attractive opportunity for investors, according to the June 7 issue of the financial weekly Barron's.
Barron's writes that AIG 'looks overpriced after moving little last week, despite the disappointing news' that a deal with Britain's Prudential had fallen apart. Shares of AIG closed at $34.75 on the New York Stock Exchange on Friday.
While AIG's shares could hit $50 over the next year, the article says, that would be a 'best case scenario' and 'plenty must break right' for the stock to move that far north.
The Barron's article suggests that AIG's junior debt, which yields around 10 percent, would be a better bet for investors.
(Reporting by Paul Thomasch; editing by Gunna Dickson)
((paul.thomasch@thomsonreuters.com; 1 646 223-6092; Reuters Messaging: paul.thomasch.reuters.com@reuters.com)) Keywords: AIG/ (Visit http://blogs.reuters.com/mediafile/ for more coverage at the Reuters MediaFile blog) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Barron's writes that AIG 'looks overpriced after moving little last week, despite the disappointing news' that a deal with Britain's Prudential had fallen apart. Shares of AIG closed at $34.75 on the New York Stock Exchange on Friday.
While AIG's shares could hit $50 over the next year, the article says, that would be a 'best case scenario' and 'plenty must break right' for the stock to move that far north.
The Barron's article suggests that AIG's junior debt, which yields around 10 percent, would be a better bet for investors.
(Reporting by Paul Thomasch; editing by Gunna Dickson)
((paul.thomasch@thomsonreuters.com; 1 646 223-6092; Reuters Messaging: paul.thomasch.reuters.com@reuters.com)) Keywords: AIG/ (Visit http://blogs.reuters.com/mediafile/ for more coverage at the Reuters MediaFile blog) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.