Piper Jaffray Maintains OW Rating on Radian Group and MGIC Investment

Weekend pundits suggest the Mortgage Insurers to be in a “dire position with further credit deterioration likely leading to issues on capital adequacy and long-term viability of the business,” Piper Jaffray reports. “In our view, MGIC Investment Corp. (NASDAQ: MTG) and Radian Group Inc. (NYSE: RDN) appear ahead of the game by laying the groundwork for optionality in the event of the apocalypse.

“Consequently, we reiterate our Overweight rating on the names, particularly in the face of continued weakness in the shares. We maintain price targets of $11 and $7.50 for MTG and RDN, respectively.”

Radian Group closed Friday at $3.92; MGIC Investment closed at $6.04.