Steven Schwartz, an analyst at Chicago Corp., has initiated coverage of two private mortgage insurers. They are PMI Group Inc., San Francisco, and CMAC Investment Corp., Philadelphia.

Mr. Schwartz has given a buy rating to both stocks.

In a research report, he set a 12-month share-price target for PMI of $59. It recently set a 52-week high of $47.375.

"We believe PMI will benefit from positive trends in the mortgage insurance industry that will lead to higher net premiums written," Mr. Schwartz wrote.

About CMAC, Mr. Schwartz said the company's growing market share should increase earnings 22% in 1995. His 12-month share price target is 61.

He estimates CMAC's earnings at $4.10 a share for 1995 and $4.75 for 1996. For 1994, CMAC Investment reported net income of $3.41 a share. The shares set a 52-week high recently of $51.625.

Both companies are listed on the New York Stock Exchange.

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