UPDATE: Piper Jaffray Upgrades Radian Group to Overweight

Piper Jaffray is out with its report today on Radian Group (NYSE: RDN), upgrading RDN from Neutral to Overweight.

In a note to clients, Piper Jaffray writes, "While we have long held the opinion Radian Group perhaps lacked the strength of balance sheet to weather the credit crisis and the ongoing residential mortgage industry debacle, time and an updated review of the company's credit trends and financials indicate a stronger position on both credit and capital. With increased confidence, we find the shares particularly compelling and upgrade Radian Group from Neutral to Overweight. In summary, capital will not be an issue as we see it and reserves appear more than adequate to weather the current environment. Our price target remains $7.50 per share."

At the time of posting, shares of RDN were trading pre-market at $5.01, up 4.59% from Friday's close.