Citi analyst Erik Bass says American Equity Life's "growth story takes a hit" with the final Department of Labor rules including indexed annuities in the best interest contract exception rather than the insurance exception. This will pressure fixed index annuity sales, Bass tells investors in a research note. About 70% of American Equity's sales are to qualified accounts and will be affected by the DOL rules, the analyst contends. He believes the stock's valuation already implies little growth potential, however. Under a worst case scenario where writing new business is no longer viable, Bass believes the value of American Equity's in-force block to a reinsurer or private equity company exceeds the current market cap. He keeps a Buy rating on the shares with a $21 price target.