SunTrust analyst Mark Hughes initiated NMI Holdings with a Buy rating and a price target of $34, saying the recent actions by the management to improve risk-adjusted returns and upgrading the company's pricing system are not "fully reflected" in the valuation for the stock. The analyst says the company is generating return on equity of nearly 20% while still scaling up, which should result in a "healthy growth in revenue and earnings." Hughes adds that NMI Holdings stands to benefit from the mortgage insurance competitive dynamic shift toward the private market.