Jefferies raises PT on Genworth Mortgage Insurance Australia; retains 'hold'

Helia

03/08/2022 19:54

** Jefferies increases PT on Australia's Genworth Mortgage
Insurance Australia  GMA.AX  to A$2.98 from A$2.77; maintains
'hold' rating
    ** GMA forecasted on Wednesday FY22 net earned premiums to
be in range of A$375 million to A$435 million, while also
flagging FY22 gross written premium to remain below 2021 levels
 urn:newsml:reuters.com:*:nFWN2ZE4FU 
    ** GMA also posted 75.8% increase in H122 underlying net
profit after tax to A$134.3 which Jefferies says was driven on
low level of delinquencies which resulted in reserve releases
and negative claims costs
    ** There are three critical issues for GMA at present which
relate to claims expenses, premium revenue, and capital
management initiatives - Jefferies; adds first two trends point
to lower earnings
    ** Jefferies raises 2022 net profit estimate by 14% to
A$155.7 mln, while cutting 2023 profit estimate by 15% to
A$127.3 mln 
    ** One of three analysts rate the stock "buy", one "hold"
and one "sell"; their median PT is A$3.16 – Refinitiv data
    ** Stock has risen nearly by a third this year

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))