Deutsche Bank hikes target price on Prudential

Analysts at Deutsche Bank raised their target price on insurance firm Prudential from 1,460.0p to 1,550.0p on Monday, stating the stock's current price did not reflect a number of key points.

Deutsche Bank believes the stock's price fails to incorporate Hong Kong's re-emergence, a "safe approach" to its investment mix, or the new chief executive's intention for the company.

"Despite the re-opening of the border between Hong Kong and China and broad equity market growth since the beginning of the year, Prudential's share price has only risen 2% year-to-date," said DB, which reiterated its 'buy' rating on the stock.

"As such, we believe the shares are deeply oversold, at a circa 55% discount to AIA on an IFRS 4 PE basis. Putting this into context, our new 1,550.0p target price provides 35% of upside, which would take the discount to AIA to a more normal 20% level."

Reporting by Iain Gilbert at Sharecast.com