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Ambac bull recommends buying the dip

Published 06/21/2017, 09:17 AM
© Reuters.  Ambac bull recommends buying the dip
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  • The latest concern for Ambac (NASDAQ:AMBC) investors has been "radio silence" on a possible deal between the company and its regulator to facilitate an exit of Ambac's Segregated Account, even as the June 10 deadline passed. Shares are now down 30% YTD.
  • Last night, Ambac announced an extension until June 30 to reach a deal.
  • The short duration of the extension should be encouraging, says BTIG's Mark Palmer, as it indicates some sort of agreement is near. "An agreement would move AMBC a step closer to unlocking its inherent value while providing it with more leverage as it seeks a favorable outcome of its representation and warranty litigation with Bank of America (NYSE:BAC)."
  • He continues with a Buy rating and $26 price target, suggesting 64% upside.
  • Now read: Ambac Financial 2017 Q1 - Results - Earnings Call Slides


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