BUZZ-NMI Holdings rises after KBW upgrades mortgage insurer on valuation

Mortgage insurer NMI Holdings' NMIH.O shares rise 2.6% to $35.77

KBW upgrades NMIH to "outperform" from "market perform"; assigns a PT of $43, a 23.3% upside to stock's last close

Brokerage says the recent stock underperformance creates an attractive entry point for investors

Says that NMIH has higher credit quality than peers, allowing the company to perform better even if the economy slows down

KBW says recent reported job cuts at government-backed mortgage providers Federal Housing Administration (FHA) and Ginnie Mae ahead of the spring selling season could temporarily shift some market share to mortgage insurers

Six of eight brokerages rate the stock "buy" or higher and two "hold"; their median PT is $43, according to data compiled by LSEG

As of last close, NMIH stock down 5.1% YTD