Deutsche Bank hikes target price on Prudential

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