Sterne Agee Reiterates Buy Rating, $40 PT on American International Group

In a report published Wednesday, Sterne Agee Group reiterated its Buy rating and $40.00 price target on American International Group

. Sterne Agee noted, “Post the sale of AIG's remaining stake in AIA (1299-HKG, HK$30.70, N/R), we are formally updating our 4Q12E EPS. With $6.5b of proceeds from the sale, we update our thoughts on valuation and turn our attention to deleveraging actions, including expected call of $1.1b of hybrids which became callable at par today.” American International Group closed on Tuesday at $35.50.