Jefferies starts on Genworth Mortgage Insurance Australia with 'hold'

Helia

21/07/2022 21:53

** Brokerage Jefferies initiates coverage of insurer
Genworth Mortgage Insurance Australia Ltd  GMA.AX  with a "hold"
rating and A$2.77 PT
    ** Jefferies says GMA is an "interesting investment case"
    ** Even though GMA is leveraged to a riskier mortgage
segment, it is well-capitalized and sufficiently reserved to
cope with a range of claims outcomes - brokerage
    ** Brokerage says the most significant uncertainty facing
GMA at the moment relates to changing macro conditions including
a potential property downturn and recessionary fears
    ** Jefferies, however, adds that with about A$3.6 bln in
investment assets, mostly held in fixed income, GMA stands to
benefit from a rising interest rate environment
    ** Brokerage believes the stock should improve once a
clearer picture regarding macro environment emerges 
    ** One of three analysts rates the stock "buy", one "hold"
and one rates it "sell"; their median PT is A$3.05 - Refinitiv
data
    ** As of last close, stock up 16.8% this year

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))