Roth/MKM cuts MBIA shares target amid wider Q2 losses

Published 07/08/2024, 11:00
Roth/MKM cuts MBIA shares target amid wider Q2 losses

On Wednesday, MBIA Inc. (NYSE:MBI) experienced a revision in its stock outlook as Roth/MKM maintained a Neutral rating but lowered the price target on the company's shares to $4.50 from the previous $7.00.

The adjustment followed MBIA's report of a second-quarter adjusted net loss that was significantly wider than anticipated. The loss of $2.90 per share sharply contrasted with the consensus estimate of a $0.30 loss and was well beyond Roth/MKM's own estimate of a $0.09 loss.

The financial institution attributed the pronounced deficit to increased losses, predominantly due to its ongoing financial exposure to the Puerto Rico Electric Power Authority (PREPA). This exposure has been a persistent challenge for MBIA, affecting its financial performance.

Roth/MKM's decision to maintain a Neutral rating while adjusting the price target for MBIA reflects the firm's analysis of the company's valuation. The new price target is based on a multiple of approximately 0.3 times MBIA's trailing adjusted book value, indicating a reassessment of the company's worth in light of the recent earnings report.

The revised price target suggests that Roth/MKM has recalibrated its expectations for MBIA's share value, taking into account the company's current financial standing and the impact of its Puerto Rican investments. MBIA's stock performance and investor outlook may be influenced by this updated assessment from a notable financial analyst firm.w

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

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