Compass Point Remains on Sidelines with MGIC Investment (MTG) After Q2
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Price: $19.38 --0%
Rating Summary:
11 Buy, 5 Hold, 0 Sell
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Today's Overall Ratings:
Up: 14 | Down: 13 | New: 16
Rating Summary:
11 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 13 | New: 16
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Compass Point analyst Jason Stewart reiterated an Neutral rating and $5 price target on MGIC Investment (NYSE: MTG) following Q2 results.
Stewart comments, "MTG reported 2Q13 EPS of $0.04 compared to our estimate for a loss of $0.12 and the street consensus expecting a loss of $0.13. MTG achieved GAAP profitability for only the second quarter since 2Q07 and continues to expect to report a full year 2013 annual net loss. The primary driver of the earnings beat was a lower incurred loss, which was driven by a lower estimated claim rate on recently reported DQs. We expect profitability metrics at MTG to gradually improve, but see no panacea to legacy credit issues and are somewhat skeptical regarding growth prospects in a market where GSE origination is declining amid heightened competition from private MI capital. That being said, we see little risk in MTG's balance sheet and the sustainability of the core business. In our view, the risk versus reward of MTG shares is fairly balanced at current trading levels."
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 $6.77 yesterday.
Stewart comments, "MTG reported 2Q13 EPS of $0.04 compared to our estimate for a loss of $0.12 and the street consensus expecting a loss of $0.13. MTG achieved GAAP profitability for only the second quarter since 2Q07 and continues to expect to report a full year 2013 annual net loss. The primary driver of the earnings beat was a lower incurred loss, which was driven by a lower estimated claim rate on recently reported DQs. We expect profitability metrics at MTG to gradually improve, but see no panacea to legacy credit issues and are somewhat skeptical regarding growth prospects in a market where GSE origination is declining amid heightened competition from private MI capital. That being said, we see little risk in MTG's balance sheet and the sustainability of the core business. In our view, the risk versus reward of MTG shares is fairly balanced at current trading levels."
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 $6.77 yesterday.
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