Ambac Financial Group Will Be Better Positioned Once Sale Of Financial Guarantee Business Closes, Analyst Says
Portfolio Pulse from Priya Nigam
Ambac Financial Group's shares have risen by 10% recently as the company plans to sell its financial guarantee business by year-end. Analyst Harry Fong upgraded the stock to 'Buy' with a price target of $15, citing potential cash earnings and a $50 million share repurchase program post-sale.
September 18, 2024 | 2:38 pm
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Ambac Financial Group's shares have increased by 10% as the company plans to sell its financial guarantee business by year-end. Analyst Harry Fong upgraded the stock to 'Buy' with a price target of $15, highlighting potential cash earnings and a $50 million share repurchase program.
The sale of the financial guarantee business is expected to provide Ambac with $180 million in deployable cash, enabling a $50 million share repurchase program. This strategic move, along with the analyst upgrade and increased price target, is likely to positively impact the stock price in the short term.
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