Bank of America Securities analyst Mihir Bhatia has reiterated their bullish stance on ESNT stock, giving a Buy rating yesterday.
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Mihir Bhatia has given his Buy rating due to a combination of factors that highlight Essent Group’s strong financial performance and operational efficiency. The company’s second-quarter earnings per share significantly exceeded expectations, driven by better-than-anticipated credit performance, controlled operating expenses, and robust top-line results. Additionally, Essent Group demonstrated solid capital return and a notable year-over-year increase in book value, which further supports the positive outlook.
Bhatia also points out that despite initial concerns about potential credit deterioration, Essent Group managed to achieve a lower default rate than forecasted, which was a key highlight of the quarter. The company’s expense discipline and effective tax rate are seen as advantageous compared to its peers in the sector. While there was a slight decline in new insurance written, the overall market share remains stable, and the persistency rate is elevated. These factors, combined with an adjusted price objective, underpin the Buy rating recommendation.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $69.00 price target.