- The surge in Genworth (GNW -3.2%) following Q1 results make it one of the best performers this year in the coverage universe of the MS team of Nigel Dally and Laura Sanchez.
- This isn't warranted, says the duo. "Rather, we see the company selling a sizable portion of its assets to reduce debt and fill the capital need for private mortgage insurer eligibility requirements ((PMIERs)). In tandem with these sales, we expect substantial EPS dilution, which we feel some investors may be overlooking.
- Previously: Genworth down 3.4% as Morgan Stanley downgrades (May 5)