Ambac Financial jumps after Roth MKM's upgrade

Octave Specialty

18/09/2024 14:43

(Updates)
    ** Shares of property and casualty insurer Ambac Financial
 AMBC.N  jump as much as 8.6%, last up 6.1% at $11.85 in early
trading
    ** Roth MKM upgrades rating on AMBC to "buy" from "neutral";
raises PT to $15 from $13, a 34.3% upside to stock's last close
    ** Brokerage says there is potential for AMBC to prosper
again as it will have no debt following the sale of its
financial guarantee business 
    ** In June, AMBC agreed to sell its legacy financial
guarantee business to asset manager Oaktree Capital for $420
mln; deal expected to close later this year or early 2025
    ** Roth MKM believes AMBC's shares will move up to the $15
level due to a $50 mln share repurchase program that will
commence when the deal closes
    ** Adds that there are other potential strategic changes
that could gain more investor enthusiasm such as selling its
underwriting operation, which Roth MKM believes is not core to
its strategy
    ** As of last close, AMBC shares down 32.2% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))