Prudential share price upbeat ahead of interims

on Aug 13, 2019
Updated: Mar 11, 2020

Prudential’s (LON:PRU) share price has advanced in London this Tuesday, ahead of the asset manager’s interim results due out tomorrow. The update will follow reports from blue-chip peers Aviva (LON:AV) and Standard Life Aberdeen (LON:SLA) earlier this month.

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As of 15:03 BST, Prudential’s share price had added 0.37 percent to 1,482.50p, marginally outperforming the broader UK market, with the benchmark FTSE 100 index which currently stands 0.22 percent higher at 7,242.78 points. The group’s shares have given up more than 18 percent of their value over the past year, as compared with about a five-percent fall in the Footsie.

Prudential results preview

Prudential is scheduled to report its half-year results tomorrow and Proactive Investors reports that analysts at UBS expect the asset manager to post operating profit of £2.62 billion for the first half of the year, marking a nine-percent rise in the prior-year period. The analysts reckon that this would be driven by Asia with £1.1 billion and the US with £1.28 billion.

The broker further forecasts the value of new business to have climbed six percent to £1.89 billion, while the interim dividend is expected to be lifted by five percent to 16.45p per share, representing a third of last year’s payout to shareholders.

In March, the Pru posted a forecast-beating rise in full-year profit, having continued to benefit from strong performance in Asia, and said that it had made “good progress in our preparations for the demerger of M&GPrudential from Prudential plc”.

Analyst ratings update

UBS reaffirmed the blue-chip asset manager as a ‘buy’ this month, without specifying a target on the Prudential share price, while JPMorgan Chase & Co, which rates the company as a ‘neutral,’ set a valuation of 1,761p on the shares. According to MarketBeat, the Pru currently has a consensus ‘buy’ rating and an average price target of 2,053.91p.

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