Piper Jaffray Upgrades Radian Group (RDN) to Neutral; Silent Bailout
RDN Hot Sheet
Rating Summary:2 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Piper Jaffray upgrades Radian Group (NYSE: RDN) from Underweight to Neutral. Price target raised from $7 to $9.
Piper analyst says, "The primary catalyst for our upgrade reflects our revised expectations on capital raise, or rather, the lack thereof. While we expect losses to continue through 2010 and into 2011, the back half of 2011 begins to look more promising, with book value now forecasted to trough around $16 per share by the end of 2011. We continue to forecast shares trading at roughly 50% of expected book value until more transparency evolves, thus our $9 price target."
"Our 2010 loss estimate revision to $5.95 from $3.16 reflects our expectations for lower premiums earned and higher incurred losses than previously modeled. Meanwhile, we rolled out our 2011 loss estimate at $2.20 per share, with most occurring during the first three quarters of the new year."
To see all the upgrades/downgrades on shares of RDN, visit our Analyst Ratings page.
Radian Group Inc. is a credit enhancement company. The Company operates in three business segments: mortgage insurance, financial guaranty and financial services.
Piper analyst says, "The primary catalyst for our upgrade reflects our revised expectations on capital raise, or rather, the lack thereof. While we expect losses to continue through 2010 and into 2011, the back half of 2011 begins to look more promising, with book value now forecasted to trough around $16 per share by the end of 2011. We continue to forecast shares trading at roughly 50% of expected book value until more transparency evolves, thus our $9 price target."
"Our 2010 loss estimate revision to $5.95 from $3.16 reflects our expectations for lower premiums earned and higher incurred losses than previously modeled. Meanwhile, we rolled out our 2011 loss estimate at $2.20 per share, with most occurring during the first three quarters of the new year."
To see all the upgrades/downgrades on shares of RDN, visit our Analyst Ratings page.
Radian Group Inc. is a credit enhancement company. The Company operates in three business segments: mortgage insurance, financial guaranty and financial services.
You May Also Be Interested In
- UPDATE: Williams Financial Group Upgrades Semtech Corp. (SMTC) to Buy; Check Again...Quarter Was Fairly Strong
- JPMorgan Upgrades Eastman Chemical (EMN) to Overweight
- UBS Maintains a 'Neutral' on Patterson Companies (PDCO); Raising 'The Bar' and Estimates
Create E-mail Alert Related Categories
UpgradesRelated Entities
Piper JaffraySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
