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Investing.com - UBS raised its price target on Radian Group (NYSE:RDN) to $43.00 from $38.00 while maintaining a Neutral rating on the stock. The mortgage insurance provider, currently trading at $37.22 with a market capitalization of $5.04 billion, has shown strong momentum with a 19% gain over the past six months. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period.
The price target increase reflects expected accretion from Radian’s acquisition of Inigo and the divestiture of its "other" business. UBS projects 28% accretion to $5.75 in 2026 earnings per share based on its analysis. The company currently trades at a P/E ratio of 9.43, with analyst targets ranging from $34 to $45.
UBS assumes Inigo will earn approximately $200 million ($1.50 per share) in 2026, representing 20% growth from 2025 levels using a 25% tax rate. The firm also estimates the divestiture of other businesses will save $40 million based on the first half of 2026 run rate.
The new price target represents 7.5x UBS’s initial proforma 2026 estimate, compared to 8.5x previously. UBS’s share count estimate is 16 million shares higher than its prior projection due to a second-half 2025 pause and slower activity in 2026.
UBS noted that additional clarity around potential capital synergies from the combined entity could cause it to revisit its target multiple for Radian Group.
In other recent news, Radian Group Inc . reported strong financial results for the second quarter of 2025, with earnings per share (EPS) of $1.01, surpassing the analyst forecast of $0.98. The company also reported revenue of $318 million, slightly exceeding the anticipated $316 million. Additionally, Radian Group has entered into a definitive agreement to acquire Lloyd’s specialty insurer Inigo Limited for $1.7 billion in a primarily all-cash transaction. This acquisition, expected to close in the first quarter of 2026, marks a significant strategic shift for Radian from a U.S. mortgage insurer to a global, diversified multi-line specialty insurer.
Moreover, Radian Group announced an increase in its borrowing limit on a repurchase agreement with JPMorgan Chase Bank, raising the maximum capacity from $400 million to $500 million. This agreement’s termination date has been extended to August 27, 2026. In other company news, Radian Group declared a regular quarterly dividend of $0.255 per share, payable on September 9, 2025, to stockholders of record as of August 25, 2025. These developments reflect Radian’s ongoing efforts to diversify and expand its financial operations.
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