MGIC Investment Conferred An “Overweight” Rating (MTG)

MGIC Investment Corp. MTG has received a rating upgrade to “Overweight” at Piper Jaffray. The equity research firm has stated that with the recent decline in the company’s stock price, and despite the continued uncertainty around credit and the housing market, MTG stock is now an attractive buy. Piper Jaffray has also increased its estimates for 2010 and 2011. The company is now expected to record ($2.55) in EPS for year 2010, whereas for year 2011, the EPS estimate has been elevated from 65 cents to $1.20. The company’s 12-month price target has also been increased to $11 from $10. The new price level is a 1.2x multiple of book value.