BTIG assumes coverage of Radian with 'buy' rating; shares rise

Shares of mortgage insurance provider Radian Group RDN.N rose nearly 2% to $34.93 in afternoon trading after BTIG assumed coverage with a buy rating and a price target of $48, implying almost 40% upside to the stock's last close.

BTIG expects RDN to deliver the highest ROE among mortgage insurers as it was able to deploy some of its excess capital into the Inigo acquisition. The brokerage also sees potential for further upside to capital return and said the company has room to optimize capital levels at Inigo.

Six of seven brokerages rate the stock buy or above, while one rates it hold. The median price target is $45, according to data compiled by LSEG. Including session moves, the stock has fallen 3% year to date.