Compass Point Maintains a 'Buy' on MGIC Investment (MTG); Entering Critical Period; Cutting Estimates
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Price: $30.71 -0.55%
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Compass Point maintains a 'Buy' on MGIC Investment (NYSE: MTG) price target of $8.00.
Analyst, Chris Gamaitoni, said, "MTG is entering a critical period. We will be intensely focused on credit performance for the next three months to discover if normal seasonality will return or if credit is able to outperform seasonality. Given management's cautious tone on credit improvement, we are decreasing our estimate to a more conservative slow improvement in credit performance. We are lowering our 2012 EPS estimate from ($1.27) to ($2.13) and our 2013 EPS estimate from $0.17 to ($0.85). We believe MTG will return to profitability in 2014. That being said, we believe MTG has several factors that could improve credit and profitability beyond our expectations: (1) government modification initiatives, (2) economic improvement, and (3) reaching a point of vintage burnout."
For an analyst ratings summary and ratings history on MGIC Investment click here. For more ratings news on MGIC Investment click here.
Shares of MGIC Investment closed at $3.43 yesterday.
Analyst, Chris Gamaitoni, said, "MTG is entering a critical period. We will be intensely focused on credit performance for the next three months to discover if normal seasonality will return or if credit is able to outperform seasonality. Given management's cautious tone on credit improvement, we are decreasing our estimate to a more conservative slow improvement in credit performance. We are lowering our 2012 EPS estimate from ($1.27) to ($2.13) and our 2013 EPS estimate from $0.17 to ($0.85). We believe MTG will return to profitability in 2014. That being said, we believe MTG has several factors that could improve credit and profitability beyond our expectations: (1) government modification initiatives, (2) economic improvement, and (3) reaching a point of vintage burnout."
For an analyst ratings summary and ratings history on MGIC Investment click here. For more ratings news on MGIC Investment click here.
Shares of MGIC Investment closed at $3.43 yesterday.
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