Shares of Genworth Financial (GNW) Trade Up 12.8%, Citi Upgrades, Forecasts No Mortgage Related Losses

Shares of Genworth Financial (NYSE: GNW) are trading up 12.8 percent on the day to $6.08, the largest gain in the Standard & Poor’s 500 Index today, following the second rating upgrade this month from Citigroup (NYSE: C) analyst Colin Devine.

Mr. Devine increased his rating on shares of GNW from Neutral to Buy as he believes that the company is positioned to withstand mortgage related losses.

Mr. Devine comments, “The market appears to be overly discounting the possibility of bankruptcy risk for Genworth,”....“While the risk of continued mortgage insurance losses in the U.S., Canada and Australia remains high, as do earnings pressures on the domestic insurance businesses from low interest rates, we believe these factors are overly discounted into the current valuation and that insolvency is not a legitimate threat.”

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