UPDATE> Stifel Nicolaus Initiates Hold on American International Group

Stifel Nicolaus initiates its coverage on American International Group (NYSE: AIG) with a Hold rating on fundamental headwinds that offset inherent value.

Stifel Nicolaus notes, "The rating implies that we believe there is value embedded in AIG through the strength of its ongoing operating subsidiaries, however, we believe there are many moving parts that will take quite some time to filter through. Hence, we think investors who currently hold the stock will be rewarded over the long term (3-5 years) and should continue to hold the shares with that time frame in mind. However, we believe new money being put to use with a more conventional time frame might not be willing to trudge through the inherent volatility and headwinds at this time."

AIG closed at $25.37 per share on Thursday.