06-Jan-14 10:41 ET AGO Assured Guaranty: MKM Partners' Top 2014 pick; excess capital will lead to significant share buyback (23.27 -0.06)
MKM Partners notes, AGO continues to be their top pick heading into 2014. Co is still in the early stages of what firm believes will be a significant return of capital. Since co is not expected to grow much in the near future, virtually all of the capital that is released is likely to be returned to shareholders largely in the form of share buybacks. Firm estimates co has the potential to return a total of approximately $2 bln, or just over half its current market capitalization by the end of 2015 (from the beginning of 2013), through share repurchases and dividends; maintain Buy and $35 tgt.