Keefe Bruyette downgraded Radian Group to Market Perform from Outperform with a price target of $35, down from $36. Despite the overall weakness in the residential mortgage market, mortgage insurance stocks have rallied 47% on average over the last 12 months and 10% over the last month, the analyst tells investors in a research note. The firm believes slowing growth could raise more questions surrounding capital return as buybacks become less accretive given higher valuations. As such, it recommends reducing exposure to the group. It downgrades Radian Group on valuation.
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