UPDATE: KBW Downgrades Amtrust Financial Services to Market Perform

KBW is out with its report today on Amtrust Financial Services AFSI, downgrading AFSI from Outperform to Market Perform. In its report, KBW writes, "AmTrust's 2Q included strong top-line growth and a solid 90% combined ratio. Excluding foreign currency gains and a lower than expected tax rate, normalized results missed our expectations. We're raising our FY11 EPS estimate, but lowering our FY12 EPS estimate. We're raising our target price to $24. We are lowering the shares to Market Perform from Outperform on valuation." At the time of posting, shares of AFSI were trading pre-market at $23.75, up 2.28% from Friday's close.