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Assured Guaranty weakness overdone, says UBS

UBS noted shares of Assured Guaranty (AGO) declined 10% on fears of a Puerto Rico municipal default. The firm said that although the company has exposure it has the excess capital and liquidity to complete its share repurchase program and could issue a new buyback authorization, noting a recent Moody's rating affirmation, its $500M debt issuance in June, and its excess capital position. UBS lowered its price target on Assured Guaranty to $28 from $31 but keeps its Buy rating on the shares.