Compass Point analyst Bijan Moazami has initiated coverage of National General Holdings Corp. at "buy," expecting a high-single-digit topline growth rate and mid-teens earnings expansion for the company in 2019 and 2020.

"The company's niche strategy, solid organic growth rate, successful acquisition track record and competitive cost structure makes it an exceptionally attractive investment," Moazami wrote in a March 20 research note.

Moazami said National General has logged "solid" growth since inception. The analyst also said the company has the "right" strategy and niche in the auto segment, noting that it focuses on affinity and nonstandard auto where it can be competitive. The company's decision to concentrate in narrow geographies has allowed it to achieve economies of scale despite being smaller than its competitors.

Moazami's price target on National General is $34. He estimates an operating EPS of $2.40 for 2019 and $2.60 for 2020.