Mortgage insurer NMI rises after RBC upgrades to 'outperform'

NMI Holdings

18/09/2024 15:35

** Shares of private mortgage insurer NMI Holdings  NMIH.O 
rise as much as 2.5%; last up 1.9% at $41.93
    ** RBC upgrades NMIH shares to "outperform" from "sector
perform"; raises PT to $48 from $40, a 16.6% upside to stock's
previous close
    ** Brokerage says NMIH has performed well despite higher
mortgage rates and home affordability limiting housing activity
in recent years
    ** Adds NMIH's combined ratio - a measure of an insurer's
profitability - remains attractive due to low default rates 
    ** Though NMIH has reached scale, there is still some room
for NMIH to increase its market share over time, RBC says
    ** As of previous close, NMIH shares up 38.6% YTD

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