Upbeat on AIG, Sterne Agee Analysts Assign the Insurer a "Buy" Rating
June 27, 2012 by Arthur D. Postal
June 26, 2012 •
A New York-based securities firm today initiated coverage of American International Group, New York, with a buy rating based on its view that its major problems are behind it, and there is a potential for strong growth in core operations, such as Chartis.
“While we view AIG as an event-driven stock in the near term, we view it as a return-on-investment improvement/free cash flow story longer-term,” say analysts at Sterne Agee in New York.
One of the reasons for Sterne Agee’s optimism about AIG’s prospects: the insurer’s interest rate risk is “more muted” than that of its competitors. Sterne Agee analysts John M. Nadel, Dan Farrell, Alex Levine and Nitin Chhabra justify their upbeat view on the fact that core assets that have had recent problems should show strong growth. Click here to read more…