Assured Guaranty Stock Intrinsic Value – Analyst Raises Price Target for Assured Guaranty, Predicts Outperformance
November 24, 2023
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Assured Guaranty ($NYSE:AGO) Ltd. (AGO) is a leading provider of financial guarantees in both the public and private sectors of the financial industry. This analyst believes that the positive outlook for Assured Guaranty is in part due to their focus on risk management and their ability to grow their book value per share.
In addition, they are optimistic about the company’s ability to maintain a low capital ratio and its ability to improve its debt/equity ratio. The analyst also noted that Assured Guaranty has continued to demonstrate a strong commitment to returning cash to its shareholders through dividends and share repurchases. Investors should take note of the analyst’s raised price target and consider adding Assured Guaranty to their portfolios if they are comfortable with the heightened level of risk. With its strong commitment to risk management, Assured Guaranty could be an excellent choice for investors looking for a reliable source of income in the near term.
Share Price
On Monday, ASSURED GUARANTY stock opened at $65.9 and closed at $66.4, up 0.7% from prior closing price of 66.0. This came after an analyst raised the price target for the company, predicting that it would outperform the market. This positive sentiment has been echoed by other analysts in the industry, who have reiterated their buy ratings on the stock and highlighted its strong fundamentals. Despite the current market volatility, ASSURED GUARANTY appears poised to continue its growth trajectory in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Assured Guaranty. More…
| Total Revenues | Net Income | Net Margin |
| 1.04k | 453 | 23.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Assured Guaranty. More…
| Operations | Investing | Financing |
| -373 | 795 | -576 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Assured Guaranty. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.94k | 6.64k | 90.83 |
Key Ratios Snapshot
Some of the financial key ratios for Assured Guaranty are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.1% | – | 62.9% |
| FCF Margin | ROE | ROA |
| -35.9% | 7.8% | 3.4% |
Analysis – Assured Guaranty Stock Intrinsic Value
GoodWhale has conducted an analysis of ASSURED GUARANTY‘s health, and based on our proprietary Valuation Line, we have determined that the intrinsic value of the ASSURED GUARANTY share is around $78.2. Currently, the stock is trading at $66.4, which is undervalued by 15.1%. This presents an opportunity for investors, as the stock price is currently lower than its intrinsic value. We believe that this discrepancy will not last long and the stock price is likely to rise in the future. In the meantime, investors can take advantage of this window of opportunity to purchase shares at a discount. More…
Peers
The Company’s principal subsidiaries include Assured Guaranty Municipal Corp, which provides financial guarantees for municipal bonds, and Assured Guaranty Re Ltd, which provides reinsurance for credit enhancement providers. The Company’s competitors include MBIA Inc, Menora Mivtachim Holdings Ltd, American Overseas Group Ltd, among others.
– MBIA Inc ($NYSE:MBI)
MBIA Inc is a holding company that, through its subsidiaries, provides financial guarantee insurance services in the United States and internationally. The company has a market cap of $547.9 million and a return on equity of 20.66%. MBIA Inc operates in two segments: Insurance Services and Financial Services. The Insurance Services segment provides financial guarantees for bonds, notes, and other obligations issued by municipalities, utilities, school districts, housing authorities, and various other governmental entities and public finance sectors. The Financial Services segment offers investment management, loan servicing, and real estate services.
– Menora Mivtachim Holdings Ltd ($OTCPK:MNRHF)
Menora Mivtachim Holdings Ltd is an Israeli conglomerate with interests in insurance, banking, and investment. The company has a market capitalization of 1.2 billion as of 2022 and a return on equity of 9.76%. Menora Mivtachim Holdings is a publicly traded company on the Tel Aviv Stock Exchange. The company was founded in 1934 and is headquartered in Tel Aviv, Israel.
– American Overseas Group Ltd ($OTCPK:AOREF)
AOG is a Bermuda-based holding company engaged in the insurance and reinsurance businesses through its subsidiaries. The Company’s segments include Property and Casualty, which provides insurance and reinsurance products for commercial and personal lines of business; Specialty, which provides insurance and reinsurance products for specialty lines of business, such as professional liability, surety, political risk, and medical malpractice; and Life, which provides life insurance products.
Summary
An investment analyst recently raised their price target for Assured Guaranty Ltd., expecting the stock to outperform. The analyst cited Assured Guaranty’s strong balance sheet, high-quality earnings, and consistent returns as reasons to invest in the company. The analyst also highlighted Assured Guaranty’s diversified book of business, flexibility in managing its credit risk profile, and recent acquisitions as catalysts for future growth. The analyst concluded by reiterating their “outperform” rating on the stock.
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