Shore Capital argues that Prudential’s (LON:PRU) short-term results show that the blue-chip insurer is on track to hit long-term plans, Citywire has reported. The comments came after the Pru updated investors on its performance yesterday, posting a rise in new business profit from its life insurance operations and noting that the demerger of its M&G business remained on track.
Prudential’s share price closed marginally lower in the previous session, giving up 0.19 percent to end trading at 1,613.00p. The shares marginally outperformed the broader UK market, with the benchmark FTSE 100 index losing 0.28 percent to close at 7,033.79 points. The stock has started Thursday’s session on the front foot, having gained 1.02 percent to 1,629.50p as of 08:03 GMT, compared with a 0.37-percent rise in the Footsie.
ShoreCap weighs in on results
Citywire quoted Shore Capital analyst Paul De’Ath as commenting yesterday that the Pru’s Asian market was still core and demographic change would “drive ongoing growth in demand for protection and savings products,” while the third quarter had seen ‘a step up in growth’ in both Asia and the US.
“Prudential remains a stock focused on Asia and the long-term growth story that remains as important today as it ever was,” the analyst elaborated, adding that the group’s “return to top line growth and significant improvement in new business profit across the board should be taken well as it reinvigorates the short-term results to match with the long-term plans”.
Other analysts on the Pru
UBS reiterated its ‘buy’ rating on the Pru yesterday, while JPMorgan Chase & Co continues to see the blue-chip group as a ‘neutral’. According to MarketBeat, the FTSE 100 insurer currently has a consensus ‘buy’ rating and an average price target of 2,160.12p.