Shares in Prudential (LON:PRU) have lost more than two percent in today’s session as Citigroup lowered its rating on the blue-chip company. Proactive Investors reports that the analysts have said that they are ‘mindful’ of new risks facing the insurance sector.
As of 14:50 BST, Prudential’s share price had given up 2.34 percent to 1,838.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.17 percent lower at 7,338.28 points. The group’s shares have lost more than two percent of their value over the past year, as compared with about a one-percent rise in the Footsie.
Citigroup downbeat on the Pru
Citigroup lowered its rating on the Pru from ‘buy’ to ‘neutral’ today, trimming its price target on the shares from 2,186p to 2,081p.
“2018 performance has again started well for European Insurance yet we are mindful of new risks facing the sector at a time when other retail industries are being transformed,” the analysts explained, as quoted by Proactive Investors, adding that a deepening global trade war would make the Pru and Dutch peer Aegon look vulnerable.
The broker further reckons that new consumer regulation, heightened awareness of data privacy and the new need to report data breaches under GDPR increase headline risks.
Other analysts on insurer
Royal Bank of Canada, which is ‘neutral’ on the Pru, set a price target of 1,740p on the shares yesterday. According to MarketBeat, the FTSE 100 company currently has a consensus ‘buy’ rating and an average price target of 2,127.67p.
Last month, the blue-chip insurer unveiled plans to demerge M&G Prudential from Prudential into two separately-listed companies. The update came as the Pru posted its full-year results, revealing a rise in operating profit.