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Forecasting The Future: 8 Analyst Projections For Prudential Financial

Author: Benzinga Insights | April 25, 2024 11:00am

Analysts' ratings for Prudential Financial (NYSE:PRU) over the last quarter vary from bullish to bearish, as provided by 8 analysts.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 0 5 3 0
Last 30D 0 0 0 1 0
1M Ago 0 0 3 2 0
2M Ago 0 0 0 0 0
3M Ago 0 0 2 0 0

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $114.75, with a high estimate of $125.00 and a low estimate of $106.00. Witnessing a positive shift, the current average has risen by 5.88% from the previous average price target of $108.38.

price target chart

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Prudential Financial is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Thomas Gallagher Evercore ISI Group Raises Underperform $116.00 $115.00
Nigel Dally Morgan Stanley Raises Equal-Weight $117.00 $109.00
Elyse Greenspan Wells Fargo Raises Underweight $106.00 $100.00
Thomas Gallagher Evercore ISI Group Raises Underperform $115.00 $104.00
Ryan Krueger Keefe, Bruyette & Woods Raises Market Perform $118.00 $112.00
John Barnidge Piper Sandler Raises Neutral $125.00 $114.00
Brian Meredith UBS Raises Neutral $112.00 $108.00
Nigel Dally Morgan Stanley Raises Equal-Weight $109.00 $105.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Prudential Financial. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Prudential Financial compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Prudential Financial's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Prudential Financial's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Prudential Financial analyst ratings.

All You Need to Know About Prudential Financial

Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset management products. While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan. The company's investment management business, PGIM, contributes approximately 10% of its earnings and has around $1.3 trillion in assets under management. The US businesses are responsible for about 50% of earnings and can be classified into Institutional Retirement Strategies, Individual Retirement Strategies, Group Insurance, Individual Life Insurance, and Assurance IQ. Finally, the international business segment of the company contributes approximately 40% of earnings with a strong market position in Japan.

Key Indicators: Prudential Financial's Financial Health

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Prudential Financial's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 19.61%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.39%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Prudential Financial's ROE excels beyond industry benchmarks, reaching 4.87%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.19%, the company showcases effective utilization of assets.

Debt Management: Prudential Financial's debt-to-equity ratio surpasses industry norms, standing at 0.75. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: PRU

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