Canada's booming residential real estate markets are expected to boost the fortunes of newly minted public company, mortgage insurer Genworth MI Canada.
Genworth MI public in July with what turned out to be the year's largest initial public offering, an $850-million offering priced at $19 a share.
Investors are still getting to know the company, which reports fourth quarter earnings on Friday. RBC Dominion Securities analysts are out with a preview on Monday that forecasts better-than-expected results, based in part on an 8.7 per cent rise in existing home sales in the fourth quarter of 2009, compared to the previous quarter. RBC Dominion noted that Q4 is typically the weakest period in the housing market.
In recent months, Genworth MI also picked up market share in insurance with mortgage lenders such as the big banks, according to RBC Dominion.
Ahead of the financial results, RBC Dominion boosted its one-year target price on Genworth MI to $31 from $30, and affirmed its "outperform" rating on the stock.
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