Wunderlich Lowering Price Target On Old Republic International (ORI)

Wunderlich Securities is lowering its price target on shares of Old Republic International Corporation ORI to $16 from $19, but is keeping its Buy rating on shares. In a note to clients, Wunderlich writes, "Old Republic International Corp. (ORI) reported a disappointing 4Q10 result of a loss of $0.12 per share compared to a loss of $0.17. We had estimated $0.13. The shortfall was primarily due mortgage insurance (MI) losses. Mr. Zucaro describes the fundamental progress in MI as "a slow boat to China." We speculate the boat is only now leaving the port. We recognize the recovery in MI will be at a slower pace than our original forecast. However, we believe the MI fundamentals will improve throughout 2011 as ORI works through a higher level of MI claims driven by increased foreclosure activity. In the meantime, ORI offers downside risk protection with an attractive yield of 5.0% + ." Shares of ORI closed at $12.76 yesterday, down 5 cents.