Ambac Financial upgraded to Buy from Neutral at Roth MKM

Roth MKM upgraded Ambac Financial to Buy from Neutral with a price target of $15, up from $13. With the sale of its financial guarantee business expected to close by year-end, Ambac’s holding company will “finally” be able to see cash earnings within a year or two, the analyst tells investors in a research note. The firm believes the company’s shares will see a move up to the $15 level, chiefly due to a share repurchase program of up to $50M that will commence upon the close of the sale of its legacy financial guarantee business expected to be around the end of the year.