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Assured Guaranty upgraded to Buy from Neutral at UBS

UBS analyst Brian Meredith last night upgraded Assured Guaranty (AGO) to Buy from Neutral with a $94 price target The shares are trading at a 40% discount to operating book value, which is unwarranted, the analyst tells investors in a research note. UBS highlights Assured “market leadership and earnings resilience.” It views current share levels as an attractive entry point given the company’s “high-quality, cash-generative franchise.” While Assured’s near-term investor sentiment may remain influenced by Brightline-related developments, its fundamentals are intact, contends the firm.

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