Compass Point Upgrades Radian Group (RDN) to Buy

Compass Point upgraded Radian Group (NYSE: RDN) from Neutral to Buy with a price target of $20.00.

Analyst Jason Stewart commented, "We upgrade RDN to Buy from Neutral due to the expected monetization of Radian Asset, which will bring RDN compliant with the proposed PMIERs faster than modeled, improvement in the legacy credit book and the strategic potential of the Clayton acquisition. ESNT shares have appreciated to within 9% of our price target and as such we downgrade shares to Neutral. While the newer PMI entrants, including ESNT, are in an advantageous position under the proposed PMIERs, the current valuation of ESNT reflects this position."

The firm also reiterate their Buy rating and Top Pick rating on NMIH Holdings (NASDAQ: NMIH) but are lowering their price target to $16 from $17.50.

Stewart commented, "We remain positive on NMIH shares and we see the greatest upside in NMIH as the equity valuation converges with peers while the company executes their business model and the stock is ultimately valued on run rate EPS, which we expect to be achieved in 1H16."

For an analyst ratings summary and ratings history on Radian Group click here. For more ratings news on Radian Group click here.

Shares of Radian Group closed at $14.53 yesterday.

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