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Genworth (GNW) Turns Lower Despite Fox-Pitt Upgrade

November 2, 2009 12:15 PM EST
GNW Hot Sheet
Rating Summary:
    3 Buy, 3 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Shares of Genworth (NYSE: GNW) are underperforming the broader markets today despite an upgrade from an analyst over at Fox-Pitt Kelton. The stock most recently traded at $10.12, down nearly 5% from Friday's close, which compares to the Dow Jones half percent surge and the S&P 500's 0.2% rise.

The firm moved its investment rating on Genworth from In-Line to Outperform, also maintaining its $15 price target.

Fox-Pitt believes that current levels offer investors an attractive entry point, but also notes that Genworth "has been one of the more challenging stories in the sector and perhaps isn't for the faint of heart." The firm said it likes that Genworth is attempting to "rebuild capital strength, reposition the investment portfolio, aggressively pursue US MI loss mitigation and reprice products across the platform."

Based on today's price action, Fox-Pitt's $15 price target represents potential upside of about 40%.

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