Compass Point Reiterates a 'Buy' on MGIC Investment (MTG); Strong NIW Offset by Seasonal Credit
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Price: $31.03 +0.49%
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 19
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Compass Point reiterates a 'Buy' on MGIC Investment (NYSE: MTG) price target of $8.00.
Analyst, Jason Stewart, said, "MTG reported June monthly operating statistics yesterday after the close, which were generally in line with our expectations and reflect an increase in seasonality of mortgage credit. Overall, credit continues to improve on a MoM basis, though at a lower sequential rate...We still believe that mortgage insurance must play a pivotal role in housing finance on a go forward basis and that the odds of a principal reduction plan being put forward by the current administration are high. Despite our secularly bullish thesis, our near term enthusiasm is somewhat tempered by the expectation for increased seasonality in mortgage credit. We believe MTG has the financial resources to meet all future claims and regulators will continue to allow MTG to write new business above a 25-to-1 risk-to-capital level."
Stewart maintains Q2 EPS estimate of (0.69), below street estimate.
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 $2.34 yesterday.
Analyst, Jason Stewart, said, "MTG reported June monthly operating statistics yesterday after the close, which were generally in line with our expectations and reflect an increase in seasonality of mortgage credit. Overall, credit continues to improve on a MoM basis, though at a lower sequential rate...We still believe that mortgage insurance must play a pivotal role in housing finance on a go forward basis and that the odds of a principal reduction plan being put forward by the current administration are high. Despite our secularly bullish thesis, our near term enthusiasm is somewhat tempered by the expectation for increased seasonality in mortgage credit. We believe MTG has the financial resources to meet all future claims and regulators will continue to allow MTG to write new business above a 25-to-1 risk-to-capital level."
Stewart maintains Q2 EPS estimate of (0.69), below street estimate.
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 $2.34 yesterday.
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