Compass Point Reiterates a 'Buy' on MGIC Investment (MTG); Monthly Data Improved
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Price: $6.35 -1.4%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade MTG Now!
Compass Point reiterates a 'Buy' on MGIC Investment (NYSE: MTG) price target of $2.50.
Analyst, Jason Stewart, said, "MTG's August monthly credit statistics were generally better than expected and do not yet reflect the anticipated seasonality of mortgage credit. Overall, credit continues to improve on a MoM and a YoY basis. Our thesis on the sector remains unchanged. We believe there is value at MTG given our view of the importance of mortgage insurance to US housing finance, the substantial claims paying resources at MTG's operating subsidiary (MGIC), the company's strong lender relationships and our view for a slow but moderate recovery in housing. August credit statistics improve our outlook for incurred losses through YE12. However, there is still significant uncertainty to our forecasts. While the parent company maintains adequate current liquidity, there are potential uses of cash that could significantly exceed current cash balances."
Raises Q3 EPS estimate from (0.92) to (0.85) and Q4 from (1.05) to (0.91)
For an analyst ratings summary and ratings history on MGIC Investment click here. For more ratings news on MGIC Investment click here.
Shares of MGIC Investment closed at $1.74 yesterday, with a 52 week range of $0.66-$5.15.
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Analyst, Jason Stewart, said, "MTG's August monthly credit statistics were generally better than expected and do not yet reflect the anticipated seasonality of mortgage credit. Overall, credit continues to improve on a MoM and a YoY basis. Our thesis on the sector remains unchanged. We believe there is value at MTG given our view of the importance of mortgage insurance to US housing finance, the substantial claims paying resources at MTG's operating subsidiary (MGIC), the company's strong lender relationships and our view for a slow but moderate recovery in housing. August credit statistics improve our outlook for incurred losses through YE12. However, there is still significant uncertainty to our forecasts. While the parent company maintains adequate current liquidity, there are potential uses of cash that could significantly exceed current cash balances."
Raises Q3 EPS estimate from (0.92) to (0.85) and Q4 from (1.05) to (0.91)
For an analyst ratings summary and ratings history on MGIC Investment click here. For more ratings news on MGIC Investment click here.
Shares of MGIC Investment closed at $1.74 yesterday, with a 52 week range of $0.66-$5.15.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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