Piper Jaffray Maintains Overweight On MGIC Investment (MTG)
Piper Jaffray is maintaining its Overweight rating and $11 price target on shares of MGIC Investment Corp. (NYSE: MTG) after the insurance company reported July operating results.
In the research report Piper Jaffray states, "MGIC released its monthly operating statistics surrounding delinquency trends for the month of July. Results largely reflect the seasonality trends expected as we move into the second half of the year. Still, July new notices of delinquency reported below the 2009 3Q run rate of 22,261, continuing a positive trend suggesting delinquencies peaked. Overall, the delinquency inventory rose a mere 557 sequentially to 229,012 primarily due to a slowing of cures. We anticipate seasonality factors to continue to weigh on inventory, though our expectations on the magnitude of change largely remains dependent on the macro environment. We maintain an Overweight rating on shares of MTG."
Shares of MGIC Investment closed at $8.15 on Friday, down 6%.
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