Compass Point Upgrades Meadowbrook Insurance (MIG) to Buy

Compass Point upgraded Meadowbrook Insurance (NYSE: MIG) from Neutral to Buy with a price target of $7.00 (from $6.50).

Analyst Ken Billingsley comments, "We are upgrading MIG to Buy from Neutral and are raising our price target to $7.00 from $6.50. Our price target is a conservative valuation of our sum-of-the-parts analysis which infers additional upside as the company continues to meet expectations of little to no future reserve deficiencies, improving fee income, and improving expense ratio. The company reported its first quarter, in the past ten, without a reserve deficiency. The market will be looking for more of the same in future quarters, but with shares trading at 67% of TBVPS, we don’t believe there is much downside in MIG at these levels. Our $7 price target represents an 80% multiple to our 2015E TBVPS of $8.87."

For an analyst ratings summary and ratings history on Meadowbrook Insurance click here. For more ratings news on Meadowbrook Insurance click here.

Shares of Meadowbrook Insurance closed at $5.40 yesterday.

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