Prudential share price: Analysts flag flat full-year profit

on Mar 11, 2019
Updated: Mar 11, 2020

Prudential (LON:PRU) is expected to report flat profits when it updates investors on its full-year performance this week. The results will come as the blue-chip asset manager continues with the demerger of its UK business.

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Prudential’s share price has climbed higher in London in today’s session, having gained 1.19 percent to 1,535.50p as of 09:32 GMT, marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.91 percent higher at 7,169.03 points. The group’s shares have lost about 17 percent of their value over the past year, as compared with about a 1.4-percent dip in the Footsie.

Prudential results preview

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The Pru is scheduled to update investors on its full-year performance on Wednesday and Proactive Investors reports that UBS expects the pensions and insurance giant to post operating profit of £4.6 billion for last year, in line with consensus forecasts but flat compared to a year earlier. Asia is expected to have continued to be the key driver with operating profit estimated to have reached £2 billion, up from £1.9 billion in the prior-year period.

UBS further forecasts a full year dividend of 49.35p, two percent below market forecasts but five percent up year-on-year.

The Pru’s results will follow those of blue-chip peers Standard Life Aberdeen (LON:SLA) is also reporting on Wednesday.

Analyst ratings update

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Deutsche Bank reaffirmed the Pru as a ‘buy’ on Friday, without specifying a price target on the stock, while earlier in the week, Barclays reaffirmed the company as an ‘overweight,’ while trimming its valuation on the shares from 2,104p to 2,063p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 2,096.62p.

As of 10:06 GMT, Monday, 11 March, Prudential plc share price is 1,535.50p.

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