Barclays Maintains an 'Underweight' on MGIC Investment (MTG); Outlook Still Cloudy, but Better than Feared

Barclays maintains an 'Underweight' on MGIC Investment (NYSE: MTG) price target of $3.00.

Barclays analyst says, "Outlook Remains Highly Uncertain: Because earnings were in line with our expectations, we are leaving our estimates, which assume a return to modest profitability by mid 2012, unchanged. Our confidence in these estimates, however, remains low due to the tremendous uncertainty around how many delinquent borrowers will ultimately default and how economic uncertainty may weigh on delinquencies. We continue to believe the risk around earnings surprises is skewed to the downside, so even though the stock is trading at less than 0.4x our trough book value estimate, we maintain our 3-Underweight rating. We believe investors interested in getting long or adding to positions in MTG would be better served waiting until we get through the seasonally difficult fourth quarter."

For more ratings news on MGIC Investment click here and for the rating history of MGIC Investment click here.

Shares of MGIC Investment closed at $2.30 yesterday.

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