Keefe, Bruyette & Woods raises MGIC Investment stock price target to $27

Published 07/07/2025, 14:58
Keefe, Bruyette & Woods raises MGIC Investment stock price target to $27

Investing.com - Keefe, Bruyette & Woods raised its price target on MGIC Investment (NYSE:MTG) to $27.00 from $26.00 on Monday, while maintaining a Market Perform rating on the stock.

The research firm cited expectations of higher relative returns on equity (ROEs) for the mortgage insurer in a "higher for longer" interest rate environment. The company already demonstrates strong profitability with a return on equity of 15%.

KBW increased its price target multiple for MGIC Investment to 1.25x from 1.2x, reflecting the company’s improved capital efficiency compared to its peers.

The analyst noted that MGIC’s capital return strategy is contributing to this enhanced efficiency relative to competitors in the sector.

Despite the price target increase, Keefe, Bruyette & Woods maintained its neutral Market Perform rating on MGIC Investment shares.

In other recent news, MGIC Investment Corp reported its Q1 2025 earnings, showing an impressive performance with earnings per share (EPS) of $0.75, surpassing the forecasted $0.69. Although the company’s revenue slightly missed expectations at $306.23 million compared to a forecast of $306.52 million, the overall financial results were strong. The company maintained a solid position in the private mortgage insurance sector, supported by robust underwriting practices and risk management. MGIC’s net income reached $186 million, with an annualized return on equity of 14.3%. The firm’s operating expenses decreased to $53 million, down from $61 million the previous year, showcasing effective cost management. Analysts from Barclays (LON:BARC) and UBS discussed MGIC’s strategy during the earnings call, focusing on market share and potential impacts of economic conditions. MGIC continues to emphasize share repurchases as its primary method of capital return, with a recent authorization of an additional $750 million repurchase program. The company’s leadership remains confident in its strategic direction amidst evolving market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.