Ambac Financial Group (AMBC) has disclosed a new risk, in the Capital Markets category.
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Ambac Financial Group faces significant foreign exchange risk due to its operations in the U.K., where the functional currency is the British pound, while most of its revenues are in U.S. dollars. Fluctuations in the exchange rate between GBP and USD can significantly skew financial results, potentially leading to losses unrelated to the company’s core business activities. Although Ambac employs forward contracts to hedge against this risk, these measures may not fully mitigate the adverse effects of currency movements.
The average AMBC stock price target is $15.00, implying 16.37% upside potential.
To learn more about Ambac Financial Group’s risk factors, click here.
