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Prudential Financial 'Ready To Rock,' Analyst Upgrades To Strong Buy

Published 24/08/2023, 18:30
© Reuters.  Prudential Financial 'Ready To Rock,' Analyst Upgrades To Strong Buy
PRU
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Benzinga - by Lekha Gupta, Benzinga Editor.

Raymond James analyst Wilma Burdis upgraded coverage on Prudential Financial Inc (NYSE: PRU) to Strong Buy from Market Perform with a price target of $125.

The analyst expects the company's 2024 repurchases to exceed $2 billion (vs. a prior estimate of $1.05 billion) and sees a dividend yield of ~5% attractive, thanks to favorable capital position.

The analyst estimates a pro forma highly liquid asset position of $6.2 billion (vs. targeted buffer of $3 billion-$5 billion), including the holding company's highly liquid assets of $4.5 billion as of Q2 FY23 and about $1.1 billion of proceeds from two recently announced deals and assuming $1.3 billion of IMR capital relief.

Burdis also sees a potential to further divest non-core operations and less appetite for mergers & acquisitions.

The analyst raised operating EPS estimates to $11.77 (from $11.62) vs. consensus of $11.92 for FY23, $13.58 (from $13.34) vs. $13.24 estimate for FY24, and $14.79 (from $14.08) vs. street view of $14.01 for FY25.

Price Action: PRU shares are trading higher by 2.09% at $93.34 on the last check Thursday.

Latest Ratings for PRU

DateFirmActionFromTo
Feb 2022Morgan StanleyMaintainsEqual-Weight
Jan 2022JefferiesInitiates Coverage OnUnderperform
Jan 2022Wolfe ResearchInitiates Coverage OnPeer Perform
View More Analyst Ratings for PRU

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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