Market Overview

UPDATE: Goldman Sachs Initiates Coverage on MGIC Investment on Opportunities in Mortgage Finance Value Chain

Share:
Related MTG
Watch These 7 Huge Call Purchases In Wednesday Trade
Barron's Picks And Pans: Pharmacy-Benefit Managers, Mortgage Insurers And More

In a report published Thursday, Goldman Sachs analyst Eric Beardsley initiated coverage on MGIC Investment (NYSE: MTG) with a Conviction List-Buy rating and $10.00 price target.

In the report, Goldman Sachs noted, “We initiate coverage on the Specialty Finance sector with Buy ratings on MTG (CL-Buy) and RDN (23% and 18% upside to our targets respectively) as we believe their pace of credit improvement is underestimated by the market. The sector also has one of the strongest secular growth outlooks in financials as FHA reform drives increased demand for private mortgage insurance. New entrant ESNT (Neutral) is a pure-play growth story, though lacks the credit upside of MTG and RDN and looks fairly valued in our view.”

MGIC Investment closed on Wednesday at $8.10.

Latest Ratings for MTG

DateFirmActionFromTo
Jul 2016Compass PointUpgradesNeutralBuy
May 2016Credit SuisseMaintainsNeutral
Apr 2016Compass PointDowngradesBuyNeutral

View More Analyst Ratings for MTG
View the Latest Analyst Ratings

Posted-In: Eric Beardsley Goldman SachsAnalyst Color Initiation Analyst Ratings

 

Related Articles (MTG)

View Comments and Join the Discussion!