First American Financial (FAF) to Benefit From Mortgage Insurance Growth

First American Financial Corporation (NYSE:FAF) is one of the best financial pure plays under $100 according to Hedge Funds.

Bose George from Keefe Bruyette reaffirmed his bullish stance on First American Financial Corporation (NYSE:FAF) on December 18. The analyst rated the stock as Buy and raised his target price forecast from $79 to $81. This revision now implies an upside of more than 30% relative to the prevailing level.

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George’s outperform rating on First American Financial Corporation (NYSE:FAF) stems from his constructive view on the mortgage insurance market. He also anticipates double-digit growth in book value, which has led to an upward revision of the stock’s target price.

As of December 30 closing, First American Financial Corporation (NYSE:FAF) had a moderately bullish sentiment, with 2 Buy ratings and 2 Hold ratings. The stock has a consensus 1-year target price of $74.50, which still offers an upside of more than 20%.

First American Financial Corporation (NYSE:FAF) is a specialty insurance provider that primarily offers title insurance and settlement services. Beyond that, they also offer home warranties, lending solutions, and wealth management services. The company has also diversified towards data and analytics for commercial and residential properties.

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Disclosure: None. This article is originally published at Insider Monkey.