Prudential (LON:PRU) Earns "Buy" Rating from Berenberg Bank

Key Points

• Berenberg reaffirmed its Buy rating on Prudential and set a GBX 1,500 price target, implying 54.35% upside from the previous close.
• Analyst sentiment is broadly positive: five analysts rate the stock Buy, and the consensus target is GBX 1,464.
• Prudential’s third-quarter new business profit rose 1%, though pressure in China may weigh on growth.

Prudential (LON:PRU - Get Free Report)'s stock had its "buy" rating reaffirmed by Berenberg Bank in a research report issued to clients and investors on Thursday, Digital Look reports. They presently have a GBX 1,500 price objective on the financial services provider's stock. Berenberg Bank's target price points to a potential upside of 54.35% from the stock's previous close.

A number of other analysts have also commented on PRU. Jefferies Financial Group reaffirmed a "buy" rating and issued a GBX 1,500 price target on shares of Prudential in a research note on Thursday, October 29th. Citigroup lowered their price objective on shares of Prudential from GBX 1,425 to GBX 1,400 and set a "buy" rating for the company in a report on Friday, September 4th. Five research analysts have rated the stock with a Buy rating. Based on data from MarketBeat.com, Prudential presently has a consensus rating of "Buy" and an average target price of GBX 1,464.

Prudential Price Performance

PRU opened at GBX 971.80 on Thursday. The stock's 50 day simple moving average is GBX 945.63 and its 200 day simple moving average is GBX 1,051.75. Prudential has a 1 year low of GBX 867.40 and a 1 year high of GBX 1,238. The firm has a market cap of £23.93 billion, a price-to-earnings ratio of 6.83, a PEG ratio of 0.40 and a beta of 0.91.

Insider Buying and Selling

In related news, insider Anil Wadhwani bought 42 shares of the company's stock in a transaction on Thursday, September 10th. The shares were acquired at an average cost of GBX 990 per share, with a total value of £415.80. Company insiders own 0.52% of the company's stock.

Key Prudential News

Here are the key news stories impacting Prudential this week:

• Positive Sentiment: Prudential’s third-quarter new business profit rose 1%, indicating slight growth in new business despite challenging conditions. This may support sentiment, although the gain was modest. Insurance firm Prudential posts 1% rise in third-quarter new business profit
• Neutral Sentiment: Prudential Hong Kong is working with MediConCen and Mastercard on instant direct billing for medical expenses. The customer-service improvement could help the business, but the reports provide no indication of its expected financial contribution. MediConCen and Mastercard partnership for Prudential Hong Kong
• Neutral Sentiment: CEO and CFO share acquisitions were disclosed through incentive or employee plans. Because these were plan-related transactions, they offer limited evidence of discretionary insider buying. Prudential CEO Acquires Shares Through Incentive Plan Prudential CFO Acquires Shares Through Employee Plan
• Negative Sentiment: Reports noted pressure in China alongside the otherwise resilient quarterly performance. That headwind may constrain growth and temper the positive impact of the small increase in new business profit. Prudential Delivers Resilient Q3 Profit Despite China Pressure

About Prudential

Prudential plc provides life and health insurance and asset management in 24 markets across Asia and Africa. Prudential's mission is to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions. The business has dual primary listings on the Stock Exchange of Hong Kong (2378) and the London Stock Exchange (PRU). It also has a secondary listing on the Singapore Stock Exchange (K6S) and a listing on the New York Stock Exchange (PUK) in the form of American Depositary Receipts.

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