Barclays raised its target price on MGIC's stock on Tuesday to $8 from $1 and said it expects the insurer to raise capital without much trouble, given Radian's successful offering. So, we are going $8/s soon.
LOL.. Losers always buy the analyst targets.. It's them that will be selling the shares you so happily over pay for. Classic wall street tactic.. Today was nothing more than short covering.. I am sure the Barclays analyst didn't realize that capital raise meant 100% dilution when he put it out there.
actually Barkley knew exactly how much dilution was going to happen.
read this posted by Newport.
Barclay: MTG target $8 based on $700mm stock offering at $4.5/shr
Barclay: Turning Positive on Mortgage Insurers with Tail Risk Mostly Gone
Based on our new 2015 EPS estimates of $0.85 for MTG and $1.50 for RDN (the MTG estimate assumes a significant capital raise in 1Q13), we are raising our price targets to $8 and $14, respectively, which still represents substantial potential upside, so we are upgrading both stocks to Overweight from Underweight.
MTG Offers More Potential Upside, But More Risk Given Capital Needs: With 91% upside to our new target from current levels, MTG seems to have more potential upside than RDN at 42%, but it is important to note that our MTG estimates and price target assumes MTG raises about $700MM of common equity at $4.50/shr