Essent Group (ESNT) PT Lowered to $72 at Keefe, Bruyette & Woods; Stock Named Top Pick

Keefe, Bruyette & Woods analyst Bose George lowered the price target on Essent Group (NYSE: ESNT) to $72.00 (from $75.00) while maintaining a Outperform rating.

The analyst said: "Our top picks into the quarter are RDN and ESNT, both of which trade just above book value.

We continue to prefer the three MIs trading closer to book value (ESNT, RDN, and ACT) compared to MTG trading at ~1.15x BV and NMIH trading closer to 1.3x. With our expectations for low-double-digit to mid-teens ROEs, compounded by optionality to return capital accretively into buybacks, we continue to find the valuations of ESNT, RDN, and ACT attractive, especially for investors with longer time horizons. Further, we think the MIs stand out in a higher for longer, loworigination environment among our coverage universe given the resiliency of MI earnings, which are driven by IIF growth."

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