Enact Holdings: ACT And Buy
Summary
- With an operating history of 40 years, Enact Holdings is already a well-established name in the PMI sector with deep connections and a broad customer base.
- The excess capital and sufficiency ratio of 181%, one of the highest in the PMI sector, provides ACT with a competitive advantage and financial flexibility for further growth ahead.
- With a 6PMI average P/B multiple of just 1.05x, I have a target price of $27.05 for the ACT, implying a 26.39% upside potential.
- The mispricing in the market won't last for long, and investors could easily gain a decent return waiting for ACT to reach its BVPS at $25.80.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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