Essent Group price target raised to $66 from $65 at JPMorgan

JPMorgan analyst Richard Shane raised the firm’s price target on Essent Group (ESNT) to $66 from $65 and keeps a Neutral rating on the shares. The firm adjusted ratings and price targets in the consumer finance group as part of a Q4 preview. President Trump’s proposal requiring issuers to limit interest rates on credit cards to 10% for one year creates heightened near-term volatility in the group, the analyst tells investors in a research note. JPMorgan believes this rate reduction, if implemented, “would fundamentally reshape the card industry, substantially reducing profitability for issuers and access to credit for consumers.” It views Trump’s post as a “high-severity, low-probability risk likely subject to significant legal challenges.” The analyst believes a defensive position continues to be warranted in the consumer finance sector.