SunTrust Likes American Equity Investment Life Holiding Co. (AEL)

SunTrust released a bullish research report on shares of American Equity Investment Life Holding Co. (NYSE: AEL). today. The analysts wrote that "we believe the valuation on American Equity is compelling ahead of 1Q results, expected May 5th. We look for EPS of $0.42 putting the company on track to achieve $1.75 in full-results, equivalent to a 13% on average equity...with continuing robust sales and a steady track record of generating spread income, we believe the company is attractive."

The firm has a price target of $15.00 on the stock. AEL is trading at 0.8x book value, which is a discount to both its historical norm as well as its peer group. The $15 price target assumes that the stock rebounds to a book value of 1.0x, which would be in line with its peers. AEL is a speculative stock with a current market cap of $626.67 million, but SunTrust believes that risks are only moderate. During the current trading session, AEL has lost 0.46% to $10.75. The shares have gained over 56% in the last six months.

American Equity Investment Life Holding Company (AEL) is engaged in the development and sale of fixed index, and fixed rate annuity products. The Company is a full service underwriter of fixed annuity and life insurance products through its wholly owned life insurance subsidiaries.