Prudential Financial (NYSE:PRU) underwent analysis by 8 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 0 | 4 | 3 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 1 | 0 |
| 2M Ago | 0 | 0 | 3 | 2 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $120.12, a high estimate of $143.00, and a low estimate of $106.00. This upward trend is evident, with the current average reflecting a 6.77% increase from the previous average price target of $112.50.
Interpreting Analyst Ratings: A Closer Look
A clear picture of Prudential Financial's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Suneet Kamath | Jefferies | Raises | Buy | $143.00 | $121.00 |
| John Barnidge | Piper Sandler | Lowers | Neutral | $121.00 | $125.00 |
| 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 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Prudential Financial. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' 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.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Prudential Financial's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Prudential Financial analyst ratings.
Delving into Prudential Financial's Background
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.
Prudential Financial: Financial Performance Dissected
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 March, 2024, the company achieved a revenue growth rate of approximately 38.09%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.
Net Margin: Prudential Financial's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 4.77%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Prudential Financial's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 4.08%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Prudential Financial's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.16%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Prudential Financial's debt-to-equity ratio surpasses industry norms, standing at 0.77. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
The Basics of Analyst Ratings
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.