FBR Capital Maintains an 'Outperform' on Magic Software (MGIC); Monthly Numbers Not A Game Changer
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Price: $11.58 -0.26%
Rating Summary:
4 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
4 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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FBR Capital maintains an 'Outperform' on Magic Software (NASDAQ: MGIC).
FBR analyst says, "Investors looking for a compelling risk/reward in the context of a stable to improving economy, MTG remains our favored vehicle in the mortgage insurance space. Those looking for instant gratification are best served looking outside of the mortgage insurance stocks entirely. With persistently high unemployment, continued weak housing data and the end of the Federal Reserve’s Quantitative Easy in sight, it is easy to lose sight of the long-term thesis in high beta, credit sensitive stocks like the mortgage insurers. To be sure, yesterday, MTG reported monthly numbers and our broad take-away is that the data reflected an unsurprising deterioration in credit trends, mostly consistent with seasonality. While the 14% monthly increase in new notices for May 2011 (versus the seasonal 2010 comparison of +2%) is disheartening, it is hardly a game changer."
For more ratings news on Magic Software click here and for the rating history of Magic Software click here.
Shares of Magic Software closed at $4.43 yesterday.
FBR analyst says, "Investors looking for a compelling risk/reward in the context of a stable to improving economy, MTG remains our favored vehicle in the mortgage insurance space. Those looking for instant gratification are best served looking outside of the mortgage insurance stocks entirely. With persistently high unemployment, continued weak housing data and the end of the Federal Reserve’s Quantitative Easy in sight, it is easy to lose sight of the long-term thesis in high beta, credit sensitive stocks like the mortgage insurers. To be sure, yesterday, MTG reported monthly numbers and our broad take-away is that the data reflected an unsurprising deterioration in credit trends, mostly consistent with seasonality. While the 14% monthly increase in new notices for May 2011 (versus the seasonal 2010 comparison of +2%) is disheartening, it is hardly a game changer."
For more ratings news on Magic Software click here and for the rating history of Magic Software click here.
Shares of Magic Software closed at $4.43 yesterday.
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