Piper Jaffray Sees 100% Upside In Assured Guaranty (AGO)

Piper Jaffray has an Overweight rating and a $35 price target on shares of Assured Guaranty AGO, which is 100% higher than where shares are today. In a note sent to investors, Piper Jaffray writes, "Following meetings with management we reiterate our Overweight rating on AGO shares, believing the Street continues to undervalue the impact of coming catalysts to AGO prospects. While not yet finalized, we believe the BABs program, if continued at all, includes a reduced subsidy, allowing meaningful production opportunities and upside to our 2011 PVP forecast of $501.0M. Finally, we believe recent rep. and warranty recoveries ($111.0M recovered in 3Q) are but the "tip of the iceberg," and continue throughout 2011, freeing up capital and providing dollar for dollar bottom-line impact." Shares of AGO lost 59 cents yesterday to close at $17.13, a loss of 3.33%.