Wells Fargo analyst Sean Dargan downgraded Essent Group (ESNT) to Market Perform and lowered his price target for the shares to $38 from $58. The analyst also downgraded MGIC Investment (MTG) to Market Perform and lowered his rating on the Mortgage Insurers space to Market Weight from Overweight. He keeps a Market Perform rating on Radian Group (RDN). Despite tailwinds from mortgage credit, companies in the sector seem "poised to compete away any benefit from tax reform, at the expense of shareholders," Dargan tells investors in a research note. The analyst thought mid-teen returns would be the floor on new pricing, but is now less certain that is the case. Dargan now has less confidence in future estimates.