Piper Jaffray Gives Color On Assured Guaranty Following Earnings Conference Call; Lowers PT

Piper Jaffray continues to rate shares of Assured Guaranty AGO Overweight with a $26 price target. Now more than ever, we believe investors should look at AGO and the potential returns/upside in the shares. Piper believes it is an attractive opportunity for value as well as growth investors given potential outcomes from S&P's eventual decision on capital requirements for ratings within the FG space. Management again addressed the proposed S&P ratings changes, indicating that assumptions made by the rating agency remain borderline incomprehensible. PVP production totaled $105.1M compared to $88.9M last quarter, better than Street expectations. Still, the S&P hangover combined with a weak new issuance market impeded production in 1Q. AGO reported losses and loss adjustment expenses of $103.0M, down 23.0% year over year from $126.7M, but materially higher than our forecast. Following $32.0M in 1Q, $72.0M in 2Q and $111.0M in 3Q, management confirmed $138.0M of 4Q recoveries via reimbursement for breaches of rep and warranty provisions. AGO closed Friday at $14.55