There are two different recommendations regarding the common stock of PMI Group, Walnut Creek, Calif., after the company announced both a fourth quarter loss and its search for new capital.

Zacks Equity Research, Chicago, has upgraded its recommendation on the shares of PMI to a 'hold.'

Zacks said "the shares have already yielded more than a 99% return since we recommended them as a sell in September 2007.

At this point, we think that the downside potential is rather limited, and we would advise the investors to book profits on their positions."

Meanwhile, FBR Capital Markets analyst Steve Stelmach said in a new research report that PMI's capital structure and ultimate loss development "remain very much in question. Without improved visibility on either metric, we believe investors are better served shying away from the risks associated with PMI and the mortgage insurance stocks generally."

FBR maintained its 'market perform' rating on PMI while lowering its price target for its common stock from $5 to $1, reflecting the company's significant cost of capital relative to its need for some form of capital relief.

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