Barclays Maintains an 'Underweight' on Radian Group (RDN); Discloses Hit to Capital from CDO Reserve in 10-Q

Barclays maintains an 'Underweight' on Radian Group (NYSE: RDN) price target of $3.00.

Barclays analyst says, "RDN's Risk-to-Capital Ratio Could Rise by up to 2.8 to 1 from Reserve on CDO...Negative Surprise Could Weigh on the Mortgage Insurance Stocks: While this issue is clearly specific to RDN, it underscores the point that the mortgage insurers are all thinly capitalized by relative standards, so negative surprises like this have the potential to push capital to levels that concern regulators. The MI stocks have had a nice run since earnings (RDN is up 39% since 10/26 and MTG is up 28% vs. a 1% decline in the S&P 500), so we would not be surprised to see a pull-back on the heels of this incrementally negative news that underscores how tenuous the capital positions of the mortgage insurers are."

For an analyst ratings summary and ratings history on Radian Group click here. For more ratings news on Radian Group click here.

Shares of Radian Group closed at $3.11 yesterday.

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