Update shared on08 Oct 2025
Fair value Increased 1.89%Analysts have increased their price target for Essent Group, raising it from $66.25 to $67.50. They cite the company's improved revenue growth outlook and continued strong credit performance as key factors.
Analyst Commentary
Analyst sentiment on Essent Group remains largely positive following recent price target increases. The company continues to earn favorable ratings as its financial and operational performance stands out among peers.
Bullish Takeaways
- Bullish analysts highlight continued upward revisions to price targets. This reflects confidence in Essent Group's ability to deliver long-term value.
- Essent Group's solid performance in the latest quarter, with credit metrics surpassing expectations, boosts confidence in management's risk discipline and growth trajectory.
- Expense and tax management are noted as key strengths. These factors set Essent Group apart from industry peers and contribute to improved profitability outlooks.
- Steady revenue growth and strong credit performance bolster the valuation case and support optimism around further share appreciation.
Bearish Takeaways
- Bearish analysts maintain a more cautious Market Perform stance. They suggest that while fundamentals are strong, valuation may now reflect much of the company's positive outlook.
- There are ongoing concerns that outperformance on credit quality may become more difficult to sustain as macroeconomic conditions evolve.
- Competitive pressures within the mortgage insurance industry are cited as potential challenges to maintaining current growth rates and profitability margins.
- Muted commentary on significant upside potential implies that some analysts see limited near-term catalysts beyond the already acknowledged strengths.
What's in the News
- Essent Group completed the repurchase of 4,175,650 shares, representing 4.07 percent of shares outstanding. The total value of the repurchase was $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, or 3.9 percent of its shares, for $230.07 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target increased from $66.25 to $67.50, reflecting a modest upward revision.
- Discount Rate decreased slightly from 7.59 percent to 7.55 percent.
- Revenue Growth forecast rose from 2.03 percent to 2.23 percent.
- Net Profit Margin declined from 51.89 percent to 50.83 percent.
- Future P/E ratio climbed from 9.32x to 9.63x.
Disclaimer
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