Genworth Mortgage Insurance Australia has flagged unchanged guidance for FY22, with a normalisation of long-term claims experience expected in FY23.
Nonetheless, Macquarie updates forecasts to include a more bearish economic environment, accounting for a 60% probability of a US recession and a “near miss” in Australia in 2023.
The broker does not include the additional 60m share buyback because of the deteriorating economic outlook. Target is reduced to $1.95 from $3.50 and the rating is downgraded to Underperform from Outperform.
