BUZZ-Insurer MBIA hits over 6-month high after KBW upgrades to 'outperform'

Reuters11-19
BUZZ-Insurer MBIA hits over 6-month high after KBW upgrades to 'outperform'

** Shares of financial guarantee insurance provider MBIA MBI.N jump 12.4% to $6.78; highest in more than six months

** KBW upgrades MBI to "outperform" from "market perform"; raises stock PT to $9 from $6.5, a 49.3% upside to stock's last close

** Brokerage says a U.S. Appeals Court last week siding with Puerto Rico Electric Power Authority (PREPA) bondholders is undoubtedly positive for financial guarantors, including MBI

** The Appeals Court, in June, had ruled that PREPA bondholders had a full claim on $8.5 bln dues, owed to them

** New PT assumes 80% settled recovery on PREPA claims, MBI's subsidiary National being sold at 65% of its statutory capital, and holding company liabilities being settled at face value - KBW

** KBW believes a potential sale of MBI's National is most likely, although the timing is admittedly uncertain

** Two of four brokerages rate the stock "buy" or higher and two "hold"; median PT is $6.75, according to data compiled by LSEG

** As of last close, MBIA shares down 1.5% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment