JP Morgan raises target price on Prudential

Analysts at JP Morgan raised their target price from insurance firm Prudential from £13.80 per share to £14.50 on Friday to reflect foreign exchange movements and a roll-forward of its valuation.

FTSE 100

8,136.99

12:59 24/12/24

n/a

FTSE 350

4,491.87

12:54 24/12/24

n/a

FTSE All-Share

4,449.61

13:14 24/12/24

n/a

Life Insurance

5,441.97

12:54 24/12/24

0.25%

13.43

Prudential

633.20p

12:35 24/12/24

0.03%

0.20p

JP Morgan stated that given the arrival of Prudential’s chief executive-elect, Anil Wadhwani, in February 2023, it had taken some time to consider key investor debates on the financial and strategic priorities for the group.

In JPM's view, a new CEO provides an "opportunity" to address a number of debates, which it feels will be "positive" for the stock.

"It may take time for the new CEO to define a new strategic vision, but investor feedback suggests that there are key topics to address as priorities," said the analysts, who stood by their 'overweight' rating on the stock.

"We are raising our Feb-24 target price to £14.50 (from £13.80), reflecting FX movements and a roll-forward of our valuation. In our view, at ~0.7x 2022E EV, Prudential trades at a deep discount to its fundamental value and nearest peer, AIA Group (on ~1.5x), reflecting investor concern over growth, capital and other frictional factors."

Reporting by Iain Gilbert at Sharecast.com