Genworth Financial on Tuesday was dubbed ‘Bear of the Day’ by Zack Equity Research because of its struggling mortgage insurance unit.
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The analytics firms specifically singled out the firm’s MI unit, noting that going forward, the mortgage insurance business will remain pressured and improvements in the company’s other business lines are expected to be slow.
Two MI firms – PMI and RMIC – are in the process of halting new policies. Currently, there are just five active MIs open and operating, compared to eight before the mortgage crisis began.
Zacks has a six-month price target of $5.25 on Genworth’s common stock, which mirrors its recent share price. (Its 52-week high is $14.)
The firm considers Genworth an “underperform” and has issued a sell rating on the firm.
Daily Briefing | Friday, September 16, 2011
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