UPDATE: Keefe, Bruyette & Woods Reiterates Outperform Rating, Lowers PT on Radian Group Following 2Q14 Wrap-Up

In a report published Wednesday, Keefe, Bruyette & Woods analyst Bose George reiterated an Outperform rating on

, but lowered the price target from $18.50 to $17.00. In the report, Keefe, Bruyette & Woods noted, “Radian reported a positive operating quarter with the beat versus us driven by lower incurred losses. We are raising our 2014 estimates to reflect lower credit losses, but lower our long term estimates and PT on reduced market share and lower returns. Management noted that returns under PMIERs (the proposed new capital rules from FHFA) would be in mid-teens based on the current book of business. Maintain OP.” Radian Group closed on Tuesday at $13.55.