Insurer MBIA hits over 6-month high after KBW upgrades to 'outperform'

Maxigen Biotech

18/11/2024 17:08

** Shares of financial guarantee insurance provider MBIA
 MBI.N  jump 12.4% to $6.78; highest in more than six months
    ** KBW upgrades MBI to "outperform" from "market perform";
raises stock PT to $9 from $6.5, a 49.3% upside to stock's last
close
    ** Brokerage says a U.S. Appeals Court last week siding with
Puerto Rico Electric Power Authority (PREPA) bondholders is
undoubtedly positive for financial guarantors, including MBI
    ** The Appeals Court, in June, had ruled that PREPA
bondholders had a full claim on $8.5 bln dues, owed to them
    ** New PT assumes 80% settled recovery on PREPA claims,
MBI's subsidiary National being sold at 65% of its statutory
capital, and holding company liabilities being settled at face
value - KBW 
    ** KBW believes a potential sale of MBI's National is most
likely, although the timing is admittedly uncertain
    ** Two of four brokerages rate the stock "buy" or higher and
two "hold"; median PT is $6.75, according to data compiled by
LSEG
    ** As of last close, MBIA shares down 1.5% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))