Join        Login             Stock Quote

Prudential Financial (PRU) Upgraded yo 'Top Pick' by RBC Capital, $91 PT

 November 15, 2012 02:09 PM

(By Balaseshan) RBC Capital Markets analyst Eric Berg upgraded his rating of Prudential Financial Inc. (NYSE: PRU) to "top pick" from "outperform" with $91 price target.

Berg said Prudential has been noteworthy on at least two fronts this year -- its stock, flat on the year, has underperformed the broader life insurance group, which is up 9 percent year to date.

And this disappointing stock-market under-performance has taken place despite excellent business performance at Prudential; the September quarter saw strong fundamentals at the Newark-based company almost across the board, the analyst noted.

Berg arrives at his $91 price target by assigning weights to the price target obtained using the residual income model and obtained using the regression analysis based on his approaches to valuation.

[Related -What The Market Wants: Slow Market Growth Continues: Consider BCOR, JBLU, PRU]

The analyst said his residual income model yielded an intrinsic value one year from now of $109 and his regression-based approach resulted in a price target of $73.

Prudential has operations in the United States, Asia, Europe and Latin America. Through its subsidiaries and affiliates, the company offers an array of financial products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management.

PRU is trading up 1.42 percent at $50.66 on Thursday.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.