Deutsche Bank Initiates Coverage on Prudential Financial at “Buy” (PRU)
Deutsche Bank analysts started multinational financial services firm Prudential Financial Inc (PRU) with a “Buy” rating as the company is in position to see growth in 2013 after a weak 2012.
The analysts see shares of PRU reaching $67, suggesting a +20.1% upside to Tuesday’s closing price of $55.66. Also, Deutsche Bank’s EPS expectations for the Newark, NJ-based company for fiscal year 2012, 2013, and 2014 are $6.15, $7.85, and $9.05, respectively. These numbers suggest above average growth.
Deutsche Bank commented, “Coming off of a weak and ‘noisy’ 2012, we believe that the company’s ROE should increase to 12.8%, well-above its cost-of-capital, in 2013. The company’s protection orientation, particularly in its International Insurance segment (which accounts for 50% of earnings), offers earnings protection. Moreover, pricing increases in the under-performing Group Insurance and a business mix shift with Retirement and US Insurance should all benefit results.”
Prudential shares were up 34 cents, or +0.61%, during premarket trading on Wednesday. The stock is up +5.56% over the past year.
The Bottom Line
Shares of Prudential Financial (PRU) have a 2.87% dividend yield, based on last night’s closing stock price of $55.66. The stock has technical support in the $50-$51 price area. If the shares can firm up, we see overhead resistance around the $58-$60 price levels.
Prudential Financial Inc (PRU) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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