MGIC Investment downgraded to Neutral from Buy at Compass Point

Compass Point last night downgraded MGIC Investment (MTG) to Neutral from Buy with a price target of $27, up from $24, following the Q4 report. The higher interest rate environment has put pressure on new insurance written volumes for the industry, leading to “anemic” insurance in force growth, the analyst tells investors in a research note. Compass is not concerned about the loss content of MGIC’s portfolio today, but expects loss and expenses to increase and put pressure on earnings. The company’s organic growth is likely to remain limited and the shares are fairly valued, contends the firm.