UPDATE: Sterne Agee Initiates Buy, $39 PT on American International Group on Multiple Catalysts

Sterne Agee initiates its coverage on American International Group

with a Buy rating and a price target of $39 a share. Sterne Agee notes, "While our 2012E EPS is below consensus and capital markets are a risk to executing the $10+b of buybacks expected in 2H12, our longer-term estimates are well above consensus and we find valuation compelling. While we view AIG as an event-driven stock in the near term, we view it as an ROE improvement / free cashflow story longer-term. AIG closed at $30.63 on Monday.