Analyst Mark Hughes says the charges against AmTrust (NASDAQ:AFSI) were made by a whistleblower in cahoots with a short selling group in 2014, with a probe yielding no results at that time.
Hughes thus believes the rehashed allegations as detailed in the WSJ report yesterday are "unfounded."
He retains a Buy rating and $28 price target.
The stock tumbled 19% yesterday to $15.30.
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