NMI Holdings rises after KBW upgrades mortgage insurer on valuation

NMI Holdings

24/02/2025 16:31

** Mortgage insurer NMI Holdings'  NMIH.O  shares rise 2.6%
to $35.77 
    ** KBW upgrades NMIH to "outperform" from "market perform";
assigns a PT of $43, a 23.3% upside to stock's last close
    ** Brokerage says the recent stock underperformance creates
an attractive entry point for investors
    ** Says that NMIH has higher credit quality than peers,
allowing the company to perform better even if the economy slows
down
    ** KBW says recent reported job cuts at government-backed
mortgage providers Federal Housing Administration (FHA) and
Ginnie Mae ahead of the spring selling season could temporarily
shift some market share to mortgage insurers
    ** Six of eight brokerages rate the stock "buy" or higher
and two "hold"; their median PT is $43, according to data
compiled by LSEG
    ** As of last close, NMIH stock down 5.1% YTD

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