Genworth upgraded to Outperform from Market Perform at Keefe Bruyette

Keefe Bruyette upgraded Genworth (GNW) to Outperform from Market Perform with a price target of $9, up from $8.50. The company could potentially recover $500M, or $1.25 per share, related to a European payment protection business it previously sold to AXA, and a counter lawsuit between AXA and Santander, the analyst tells investors in a research note. The firm says a ruling is expected mid-to-late summer, and proceeds could total as much as 15%-20% of Genworth’s market capitalization. In addition, Genworth currently trades at a 22% discount to its implied sum-of-the-parts with no lawsuit recovery, greater than the 15% average discount since mid-2023, notes Keefe.