Update shared on 05 Nov 2025
Analysts have raised their price target for Essent Group, increasing it by $4 to $71. They cite the company's solid quarterly performance and strong expense and tax management compared to peers.
Analyst Commentary
Recent analyst updates reflect a generally positive outlook on Essent Group, with multiple price target increases following the company's financial results. The focus remains on valuation, company execution, and the sustainability of recent performance drivers.
Bullish Takeaways- Bullish analysts have raised price targets for Essent Group, reflecting growing confidence in the company's financial trajectory.
- Essent's disciplined expense and tax management continues to outperform peers. This supports long-term margin improvement and justifies higher valuations.
- Solid quarterly results and better-than-expected credit performance are seen as indicators of effective risk management and resilient business execution.
- There is ongoing optimism around Essent's ability to sustain growth through operational efficiency and prudent underwriting practices.
- Despite increased price targets, some analysts maintain a neutral stance on the shares. This indicates concerns about potential upside being already reflected in the valuation.
- Heightened competition and the cyclical nature of mortgage insurance could weigh on future growth and profitability.
- Cautious analysts are watching for any signs of credit deterioration, which could pressure earnings and temper near-term enthusiasm around the stock.
What's in the News
- Essent Group has completed the repurchase of 4,175,650 shares, or 4.07% of outstanding shares, for a total of $240.21 million under the buyback announced on February 14, 2025 (Key Developments).
- Between April 1, 2025 and July 31, 2025, the company repurchased 3,995,318 shares, representing 3.9% of its shares, for $230.07 million (Key Developments).
Valuation Changes
- Fair Value remains unchanged at $67.5 per share.
- The Discount Rate has fallen modestly from 7.54% to 7.33%.
- Revenue Growth is slightly lower, moving from 2.30% to 2.25%.
- Net Profit Margin has risen fractionally from 50.81% to 50.89%.
- Future P/E has decreased marginally and is now at 9.56x compared to the prior 9.61x.
Disclaimer
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