MKM Partners analyst Harry Fong raised his price target on Ambac Financial to $20 after its agreement with majority of preferred shares holders to exchange those holdings for debt and warrants issued by the parent Ambac Financial Group (AFG) company. Fong notes that the action "removes the liquidity preference of the AMPS shares over other debts and removes voting rights that could negatively affect other transactions the company may be considering". The analyst also keeps his Neutral rating, adding that shares appear to be "overvalued" on adjusted book value basis.