Entering text into the input field will update the search result below

Downgrade of MBIA's National sparks rally as sale mulled

Jun. 27, 2017 7:24 AM ETMBIA Inc. (MBI) StockMBI, AGOBy: Stephen Alpher, SA News Editor20 Comments
  • S&P yesterday afternoon downgraded MBIA's (NYSE:MBI) municipal bond insurance unit by two notches to A from AA-. The move, says BTIG bull Mark Palmer, significantly diminishes National's ability to write new business, and thus boosts the chances that MBIA will look to sell itself.
  • The natural buyer, says Palmer, is Assured Guaranty (NYSE:AGO), which has been clear about its intention to consolidate what's left of the monoline industry.
  • He reiterates his Buy rating and $14 price target. That's 50% of adjusted book value, and nearly 60% upside for the stock.
  • MBIA gained 4.6% yesterday, and Assured Guaranty 2.2%.

Recommended For You

About MBI Stock

SymbolLast Price% Chg
Market Cap
PE
Yield (TTM)
Rev Growth (YoY)
Prev. Close
Compare to Peers

Related Stocks

SymbolLast Price% Chg
MBI--
MBIA Inc.