Wunderlich Securities Reiterates Buy Rating on Shares of Meadowbrook Insurance Group (MIG)

Wunderlich Securities reiterates its Buy rating on shares of Meadowbrook Insurance Group, Inc. MIG Monday, noting that it "believe[s] the valuation is supported by the company's superior ROE of 10.7%, double-digit premium growth, and conservative balance sheet." Meadowbrook Insurance Group is a specialty insurance underwriter and insurance administration services company. The company markets and underwrites specialty property and casualty insurance programs. MIG is reporting 1Q11 results on May 2, after the market close. Wunderlich forecasts 1Q11 EPS of $0.28 compared to $0.30 a year ago. Wunderlich holds a $12 price target on the stock. Notably, Elizabeth C. Malone of Wunderlich Equity Research "believe[s] 1Q11 results could beat our expectations as a result of favorable reserve development. In 1Q10, MIG reported $9.7 million in reserve development, or $0.12 per share. In addition, the company has experienced favorable reserve releases every quarter since at least 1Q08." Shares of MIG closed lower by $0.03 on Friday, to $10.24.