Compass Point Cuts Price Target on MGIC Investment (MTG); Liquidity and Capital Concerns

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Compass Point maintains a 'Buy' on MGIC Investment (NYSE: MTG) price target lowered to $2.50.

Analyst, Jason Stewart, said, "We are reducing our price target to $2.50, which represents a modest premium to our expected YE12 book value per share estimate and note that our rating and price target remain under review until we complete a comprehensive holding company liquidity analysis. We believe that there is value at MTG given our view of the importance of mortgage insurance to US housing finance, substantial claims paying resources at MTG's operating subsidiary (MGIC), strong lender relationships and our view for a slow but moderate recovery in housing. However, there is significant uncertainty to our forecasts, specifically in our projection for incurred losses through YE12."

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 $0.88 yesterday, with a 52 week range of $0.85-$5.15.

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