New Forecasts: Here's What Analysts Think The Future Holds For Assured Guaranty Ltd. (NYSE:AGO)

Assured Guaranty Ltd. (NYSE:AGO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Assured Guaranty will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Assured Guaranty's two analysts is for revenues of US$952m in 2023 which - if met - would reflect a substantial 39% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$767m of revenue in 2023. The consensus has definitely become more optimistic, showing a considerable lift to revenue forecasts.

See our latest analysis for Assured Guaranty

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Assured Guaranty is forecast to grow faster in the future than it has in the past, with revenues expected to display 55% annualised growth until the end of 2023. If achieved, this would be a much better result than the 10% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.1% annually. Not only are Assured Guaranty's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Assured Guaranty this year. Analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Assured Guaranty.

Analysts are definitely bullish on Assured Guaranty, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.