
Genworth Financial (GNW) Stock Forecast & Price Target
Genworth Financial (GNW) Analyst Ratings
Bulls say
Genworth Financial operates within a gradually improving life insurance industry, which has seen reduced liability tail risks and expanded returns alongside free cash flow conversion over the past decade. The company's Enact segment is positioned well with a 17% market share, and is projected to achieve annual insurance in-force growth of 2-3% while generating return on equity (ROES) in the range of 11-13%, aligning with industry peers. Additionally, favorable operating conditions, including higher interest rates, demographic tailwinds, and technological advancements, contribute to a constructive growth outlook for the company.
Bears say
Genworth Financial has faced significant legal challenges, including an $850 million payout to AXA for pre-2005 mis-selling liabilities, which may impact its financial stability and future earnings potential. Despite efforts to reduce leverage from $2.7 billion in 2020 to $0.8 billion and executing $590 million in buybacks since 2022, the ongoing litigation and associated financial liabilities could undermine investor confidence. Additionally, the company's heavy reliance on its Enact segment for revenue generation raises concerns regarding diversification and resilience in a volatile market.
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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