
Genworth Financial (GNW) Stock Forecast & Price Target
Genworth Financial (GNW) Analyst Ratings
Bulls say
Genworth Financial Inc operates within a gradually improving life insurance industry, which has successfully reduced liability tail risk while enhancing returns and free cash flow conversion over the past decade. The present economic environment, characterized by higher interest rates, demographic tailwinds, and technological advancements, is conducive to growth, which should support the company’s expected annual insurance in-force growth of 2-3% while achieving return on equity (ROE) in the range of 11-13%. Additionally, with a 17% market share, Genworth's Enact segment is poised to capitalize on these favorable conditions, contributing significantly to the company's overall revenue generation.
Bears say
Genworth Financial Inc. faces substantial financial liabilities stemming from a lawsuit by AXA regarding mis-selling, resulting in $850 million in payments between 2020 and 2022, which contribute to pressing financial concerns. Despite the company's efforts to reduce leverage from $2.7 billion to $0.8 billion and execute $590 million in share buybacks since 2022, the ongoing litigation and its associated costs pose a significant risk to the company's financial stability. The pending trial results against Santander, which could further complicate the company's liabilities, suggest that Genworth may continue to grapple with unresolved legal issues that could negatively impact future profitability.
This aggregate rating is based on analysts' research of Genworth Financial and is not a guaranteed prediction by Public.com or investment advice.
Genworth Financial (GNW) Analyst Forecast & Price Prediction
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