AGO - Assured Guaranty Continues To Increase Intrinsic Value With Accretive Buybacks
2024-06-05 16:46:22 ET
Summary
- Assured Guaranty, the leading bond insurance company in the US, trades at a discount to intrinsic value despite a strong stock rally.
- The company has successfully navigated the Puerto Rico debt restructuring and remains in a strong financial position.
- Higher interest rates and increased bond insurance opportunities have boosted earnings, and the management team is expected to create more value for shareholders.
Assured Guaranty Ltd. ( AGO ) is the leading bond insurance company in the United States, and despite a robust rally in stock price, the stock still trades at a material discount to intrinsic value. The company has painstakingly worked through the Puerto Rico debt restructuring for nearly a decade, and despite paying heavy claims, the company remains in arguably its best financial position in its history. Higher interest rates have created more opportunity for bond insurance, while also providing a boost to earnings via higher investment income. While I think it is likely the economy will continue to weaken, I'm confident AGO's management team will still be able to build more value for shareholders from current prices. I have covered AGO on numerous occasions on Seeking Alpha....
Assured Guaranty Continues To Increase Intrinsic Value With Accretive Buybacks