UPDATE: Sterne Agee Initiates AMR at Buy

Sterne Agee is out with its report today on AMR

, initiating AMR at Buy. In its report, Sterne Agee writes, "We are initiating research coverage of AMR Corp with a BUY rating and $6 price objective. While this may be a surprise to some, given the lack of a path to sustained profits at this time, our analysis indicates that AMR shares trade basically near the time value of its longer-dated options, and our rating is more of a trading call, given the recent stock price declines on Chapter 11 rumors, and what we believe to be a much stronger financial condition than the markets are appreciating, given its recently announced aircraft orders, progress with its employee groups, and the underlying airline industry fundamentals." At the time of posting, shares of AMR were trading at $2.49, up 1.63% from Thursday's close.