Helia shares rally as Macquarie sees value after selloff

The news: Helia Group was among the best performing ASX 200 stocks in early afternoon trading, as investors continued to digest the potential loss of the mortgage insurance provider's long-term contract with Commonwealth Bank.

The numbers: Helia shares were up 4% to $3.81 at 1:15pm AEDT. They shed more than 25% on Friday after the company warned that its mortgage insurance contract with CBA is at risk.

The context: Analysts generally took the announcement negatively, with large cuts to valuations.

However, Macquarie upgraded its rating on Helia from 'underperform' to 'neutral'. Analysts said the loss of the CBA contract is "negative for growth in the long run", but the recent share price reaction sees the stock's valuation better capture the company's risks.