Ambac Financial upgraded to Buy at Compass Point yesterday

As previously reported last night, Compass Point analyst Giuliano Bologna upgraded Ambac Financial to Buy from Neutral with an unchanged price target of $18 after Ambac reported Q2 results. In the near-term, the firm doesn’t view quarter-to-quarter earnings as “the primary driver” of shares as the focus is on Ambac’s ability to wind down and maximize the value of Ambac Assurance Corporation while also growing the company’s new businesses, the analyst tells investors. With increased visibility around the timing of potentially monetizing AAC, the firm believes shares are “well positioned to outperform” and the recent pullback creates a buying opportunity, the analyst added.