Wells Fargo Securities Rates Assured Guaranty (AGO) Outperform

Wells Fargo Securities analysts Jim Shanahan and Nathan Burk rated shares of Assured Guaranty Ltd. (NYSE: AGO) Outperform, with a valuation range of $28 to $30.

Wells Fargo Securities hosted a luncheon with Dominic Frederico, the Chairman and CEO of Assured Guaranty Ltd. on March 11.

The analysts said that Assured Guaranty Ltd. effectively has a monopoly within its industry and the potential to increase market penetration.

They also said that Assured Guaranty's finances are solid, it has excess capital and its credit risks seem manageable.

The Wells Fargo Securities analysts wrote that, "AGO has consistently reported an operating profit throughout the credit cycle, a considerable accomplishment, in our view. While the market opportunity for financial guarantors is somewhat limited, AGO is the dominant remaining player in the market, with very profitable new business opportunities. With stabilized ratings, an improved earnings outlook and the potential for an improving economy, AGO shares should continue to outperform financial peers, in our view."