UPDATE: BTIG Downgrades Genworth Financial to Neutral Following Price Target Achievement

In a report published Wednesday, BTIG Research analyst Mark Palmer downgraded the rating on Genworth Financial GNW from Buy to Neutral, and removed the $11.00 price target. In the report, Palmer noted, “While we continue to believe that GNW trades at a discount to its sum-of-the-parts value, we also think that a lack of apparent near-term catalysts could make additional significant appreciation in its share price a more difficult proposition. Consequently, we are moving to the sidelines for now. At the same time, we note that GNW does have catalysts over the longer-term that could drive appreciation, including the potential partial initial public offering of its Australian mortgage insurance (MI) unit. We have also noted the recent observation by some investors that the achievement of profitability by the company's U.S. MI unit in 1Q13 following 21 consecutive quarters of losses has created the potential for a partial IPO of that unit.” Genworth Financial closed on Tuesday at $10.89.