Aveanna upgraded to Neutral from Sell at UBS; Price target raised to $8 from $6.75.

Tuesday, Aug 19, 2025 10:19 am ET1min read

UBS analyst AJ Rice upgraded Aveanna (AVAH) to Neutral from Sell with a price target of $8, citing improved visibility on leverage trajectory and better understanding of interest rate swaps/caps. The analyst believes Aveanna's outsized earnings performance this year allows it to accelerate the path to a reasonable leverage ratio.

UBS Group has issued a new report on Assured Guaranty (NYSE: AGO), upgrading the financial services provider's stock to a neutral rating with a price target of $92.00. The brokerage firm, currently holding a neutral rating on AGO, has set this new target following recent developments in the company's earnings and market performance.

Assured Guaranty reported disappointing quarterly earnings, with an earnings per share (EPS) of $1.01, falling short of the consensus estimate of $1.57. Despite this, the company's revenue increased by 39.1% year-over-year, reaching $281.00 million. The company's return on equity stood at 7.18%, and its net margin was 44.53%.

Wall Street Zen, another research firm, had previously downgraded AGO from a "hold" rating to a "sell" rating. However, UBS's upgrade suggests a more optimistic view, with the brokerage noting improved visibility on the company's leverage trajectory and better understanding of interest rate swaps/caps.

Assured Guaranty's stock has been volatile, trading down 2.3% on Wednesday, August 13th, reaching $80.63. The company has a market capitalization of $3.84 billion, a price-to-earnings ratio of 8.91, and a beta of 0.88. It has a debt-to-equity ratio of 0.30, a quick ratio of 0.75, and a current ratio of 0.75. The stock has a 12-month low of $74.09 and a 12-month high of $96.50.

Institutional investors have shown significant interest in AGO, with 92.22% of the stock currently owned by institutional investors and hedge funds. Nuveen LLC, River Road Asset Management LLC, Reinhart Partners LLC, American Century Companies Inc., and Royce & Associates LP have all increased their stakes in the company.

Assured Guaranty also recently announced a quarterly dividend, with a payout of $0.34 per share, representing an annualized dividend of $1.36 and a dividend yield of 1.7%. The ex-dividend date for this dividend is Wednesday, August 20th.

CEO Dominic Frederico and COO Robert Bailenson have sold shares of the company's stock, with Frederico selling 10,438 shares and Bailenson selling 40,000 shares. These sales represent decreases in their positions of 0.77% and 12.06%, respectively.

Despite the recent downgrade from Wall Street Zen, UBS's upgrade suggests that investors may want to reconsider their positions in AGO, given the brokerage's more optimistic view on the company's future prospects.

References:
[1] https://www.marketbeat.com/instant-alerts/ubs-group-issues-pessimistic-forecast-for-assured-guaranty-nyseago-stock-price-2025-08-13/

Aveanna upgraded to Neutral from Sell at UBS; Price target raised to $8 from $6.75.

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