UPDATE: Guggenheim Securities Reiterates Buy Rating, Raises PT on Meadowbrook Insurance Group on Attractive Potential Target

In a report published Wednesday, Guggenheim Securities analyst Bijan Moazami reiterated a Buy rating on

, and raised the price target from $9.00 to $10.00. In the report, Guggenheim Securities noted, “Meadowbrook reported 3Q13 operating EPS of $0.10 a share, or $0.13 if a cancelled quota share reinsurance transaction is excluded. We expected $0.09 a share and First Call consensus was $0.12, which was distorted by a couple of large estimates. We are increasing our PT to $10 from $9 and our 2014E EPS to $0.60 from $0.45 on improvement in expected reserve deficiency. Meadowbrook premium volume decreased year over year, but the pace of decrease was less dramatic than we expected, given the company's rating downgrade last summer. Gross premium volume of $257 million was better than our projection of $245 million.” Meadowbrook Insurance Group closed on Tuesday at $6.66.