UPDATE: JP Morgan Initiates AmTrust Financial Services with Neutral, $31 on Valuation

JP Morgan initiates its coverage on AmTrust Financial Services

with a Neutral rating and a price target of $31. JP Morgan says, "AFSI is a growth-focused company with a differentiated business model that should generate top-line gains well in excess of peers. However, we believe it is too early to pay up for growth until margins show more signs of improvement. While renewal rate improvements are constructive enough to support a growth bias, absolute pricing needs to improve further to drive margin gains." AFSI closed at $29.98 on Thursday.