Analysts Offer Insights on Financial Companies: LGI Homes (NASDAQ: LGIH), MGIC Investment (NYSE: MTG) and Hertz Global Holdings Inc (NYSE: HTZ)By Carrie Williams
Companies in the Financial sector have received a lot of coverage today as analysts weigh in on LGI Homes (NASDAQ: LGIH), MGIC Investment (NYSE: MTG) and Hertz Global Holdings Inc (NYSE: HTZ).
LGI Homes (NASDAQ: LGIH)
“We rate the shares of LGIH Outperform given the company’s strong growth profile and nearly 100% leverage to the entry-level market, which we believe will be the fastest growing housing market segment given favorable demographics. In addition to overall demand improvement, LGI has plenty of growth runway ahead given its limited geographic footprint and shallow depth in some of its recently entered markets.”
According to TipRanks.com, East is a 3-star analyst with an average return of 5.8% and a 47.1% success rate. East covers the Industrial Goods sector, focusing on stocks such as Calatlantic Group, Meritage Corp., and Owens Corning.
LGI Homes has an analyst consensus of Moderate Buy.
MGIC Investment (NYSE: MTG)
“We are maintaining our 2016 through 2018 core EPS estimates of $0.91, $0.96, and $1.05 following the release of October monthly numbers. The credit quality trends are better than our expectations for the quarter, which if they continue could provide upside for the quarter. Credit quality: MGIC’s defaults decreased 1.6% in the month, half of the total decline we expected for the fourth quarter. Both NODs and cures were better than expected leading to the strong monthly credit performance. NODs declined 13.2% from a year ago compared to our estimate of 8.0% for the quarter. The cure rate was 97% in the month, 1,000 bp higher than cure rate in October 2015.”
According to TipRanks.com, Harter is a 3-star analyst with an average return of 1.3% and a 59.3% success rate. Harter covers the Financial sector, focusing on stocks such as Arlington Asset Investment, Newcastle Investment Corp., and American Capital Mortgage.
MGIC Investment has an analyst consensus of Moderate Buy, with a price target consensus of $9.50.
Hertz Global Holdings Inc (NYSE: HTZ)
“We lowered estimates post our visit with mgmt near the end of Q3, but we couldn’t remotely envision this outcome. The stock could be down commensurate with the EBITDA revision. Debt covenants could come back into play given the severity of the EBITDA decline. A conference call is scheduled for 8AM ET tomorrow (11/8) (www.hertz.com).”
According to TipRanks.com, Kwas is a 4-star analyst with an average return of 6.1% and a 72.7% success rate. Kwas covers the Consumer Goods sector, focusing on stocks such as Tower International, Tenneco Automotive, and Delphi Automotive.
Currently, the analyst consensus on Hertz Global Holdings Inc is Moderate Buy and the average price target is $57, representing a 171.4% upside.
In a report released today, Deutsche Bank also downgraded the stock to Hold.