Citigroup cuts their AIG tgt to $4.50 (1x current tangible book) from $14 following last night's deal with the Fed, noting that while shareholders are significantly diluted, the stock will retain some value. The firm would expect shares to rally up through yesterday's close and perhaps beyond due to short covering.
$4.5 is 1 yr target. Not today target so don't get too excited. While the shorts cover, other big holders will dump so AIG is not going anywhere quick. If you buy for a quick buck, you may be disappointed. AIG will survived but 80% less than it was yesterday. The shorts aren't too scare now. Long need to be patient for 1-2 years. GL