Radian Group price target lowered to $17 from $23 at Wells Fargo
Wells Fargo analyst Sean Dargan lowered his price target for Radian Group (RDN) to $17 from $23 and keeps a Market Perform rating on the shares. The analyst this morning also downgraded Essent Group (ESNT) and MGIC Investment (MTG) to Market Perform and lowered his rating on the Mortgage Insurers space to Market Weight from Overweight. 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.