Radian Group just upgraded at Keefe Bruyette, here’s why

Keefe Bruyette analyst Bose George upgraded Radian Group to Outperform from Market Perform with an unchanged price target of $29. The analyst cites valuation and the firm’s conviction in the mortgage insurers for the upgrade. While mortgage volumes likely hit bottom in 2023, volumes will remain “anemic” in 2024, the analyst tells investors in a research note. Keefe’s favored sectors for 2024 are mortgage servicing-heavy names, which it says can generate solid earnings from servicing in a low mortgage volume environment, and mortgage insurers, which it says can generate mid-teens book value growth driven by strong earnings .