NEW YORK (TheStreet) -- Shares of MGIC Investment (MTG - Get Report) are climbing 2.57% to $6.99 on Wednesday morning after the company posted better-than-expected second quarter results yesterday and was upgraded at Compass Point.
The firm raised its rating on shares to "buy" from "neutral" and increased its price target to $9 from $8.50 this morning, the Fly reports.
Compass Point also revised estimates higher to include lower default-to-claim assumptions and a gradual decline in the reserve per late stage default, which translates to a lower incurred loss estimates, the Fly added.
The higher rating comes after the mortgage insurance company reported earnings and revenue that beat analysts' expectations.
MGIC posted earnings of 26 cents per diluted share, exceeding analysts' estimates of 20 cents per share. Revenue was $263.5 million, higher than forecasts of $255.15 million.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and expanding profit margins.
But the team also finds weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MTG