Assured Guaranty Downgraded to Neutral, Sets $80 Target After $182M Q1 Revenue Miss
Roth Capital cut Assured Guaranty’s rating to Neutral from Buy with an $80 target following Q1 revenue of $182 million, down from $239 million year-over-year. It posted EPS of $2.50 and saw gross written premiums double to $70 million, with book value at $124.28 per share.
1. Rating Adjustment
Roth Capital downgraded Assured Guaranty from Buy to Neutral and set an $80 price target, reflecting a more cautious view on revenue trends despite solid profitability.
2. Q1 Financial Results
The insurer reported Q1 earnings of $2.50 per share, beating estimates by $1.00, while revenue fell to $182 million from $239 million in the prior-year quarter.
3. New Business Growth
Gross written premiums doubled to $70 million in the period, driven by expanded public finance insurance commitments boosting new business volume.
4. Book Value vs Market
Shareholders’ equity per share reached $124.28 as of March 31, significantly above the trading price near $82.50 and the $80 target.