Roth MKM upgrades Ambac Financial to 'buy', raises PT

Octave Specialty

18/09/2024 12:49

** Roth MKM upgrades rating on property and casualty insurer
Ambac Financial  AMBC.N  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;))