UPDATE: Goldman Sachs Initiates Coverage on MGIC Investment on Opportunities in Mortgage Finance Value Chain
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
|May 2016||Credit Suisse||Maintains||Neutral|
|Apr 2016||Compass Point||Downgrades||Buy||Neutral|
|Apr 2016||Deutsche Bank||Initiates Coverage on||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.