** 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

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))