Prudential: RBC sees value post demerger, upgrades to 'outperform'
02/03/2021 08:06
** RBC upgrades insurer Prudential Plc PRU.L to
"outperform" from "sector perform", and raises stock PT to 1800p
from 1300p
** "Prudential's more conservative approach to profit
recognition is at odds with its lowly valuation, and we expect
that value to shine through when its U.S. business is demerged
in Q2," says RBC
** On Jan 28, co announced a plan to separate its U.S.
business, Jackson Financial Inc in Q2 2021 through a demerger
(nASN000RKI)
** Brokerage expects Jackson to trade well after an initial
sell-off
** Co will outperform its peers given its greater weight in
healthcare products - brokerage
** RBC says co's business mix is more exposed to less risky,
more-mature markets and sees a recovery in Hong Kong post COVID
** Avg rating among 16 analysts covering PRU is "buy";
median PT 1467.50p - Refinitiv Eikon Data
** YTD, PRU is up ~7.9%
(Reporting by Aniruddha Chakrabarty)
((aniruddha.c.thomsonreuters.com@reuters.net))