Prudential share price up as Deutsche Bank lifts valuation

Analysts upbeat on European insurance sector

Prudential share price up as Deutsche Bank lifts valuation

Shares in Prudential (LON:PRU) have advanced in London in today’s session, outperforming the broader market, with analysts at Deutsche Bank lifting their price target on the stock. The move came as the broker issued an upbeat note on the European insurance sector.

As of 14:51 GMT, Prudential’s share price had added 0.66 percent to 1,897.50p, outperforming the benchmark FTSE 100 index which currently stands 0.31 percent higher at 7,694.56 points. The Pru’s shares have added more than 15 percent to their value over the past year, as compared with an over six-percent rise in the Footsie.

Deutsche Bank upbeat on insurers

Deutsche Bank, which is bullish on the Pru with a ‘buy’ rating, lifted its price target on the company from 2,000p to 2.050p today. The move came as the analysts issued an upbeat note on the European insurance sector at the start of the year, noting that many of the higher-quality insurance stocks had performed well in 2017, and selectively they see this momentum continuing, highlighting Prudential.

“DB’s strategists are generally cautious on the year ahead, but insurers nonetheless look reasonably positioned – cushioned against market weakness by strong balance sheets and on PEs that are well within the long-term trading range,” the analysts pointed out, as quoted by Proactive Investors, adding that they felt “the sector can modestly outperform in 2018”.

Hard Brexit manageable

Proactive Investors reported that Deutsche Bank had also analysed the downside in UK insurers from UK political risk, concluding that for most stocks the impact of a hard Brexit, for instance, is manageable.

The upbeat comments come after Shore Capital reiterated its bullish stance on the Pru last month, arguing that the group’s opportunities remained ‘immense’.

Prudential is scheduled to update investors on its full-year performance on March 14.

As of 15:11 GMT, Thursday, 04 January, Prudential plc share price is 1,898.50p.

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