Nomura Securities Reiterates a 'Reduce' on Prudential plc (PUK); Break-up Is Not The Answer

Nomura Securities reiterates a 'Reduce' on Prudential plc (NYSE: PUK), cuts PT from 715p to 700p.

Analyst, Nick Holmes, said, "In our view, the market is continuing to overvalue the company’s US and UK businesses – the shares are trading on a 32% premium to what we believe to be its break-up value given that its US and UK operations would be likely to sell for no more than 0.8x and 0.9x book value, respectively. Prudential is trading on 1.9x ’12 IFRS NAV vs the sector average of 0.9x, with the market seemingly ignoring its earnings mix, which remains heavily weighted towards the UK and US. On the BUY side, we would highlight L&G as our top UK pick, and AXA (OTC: AXAHY) and Zurich (OTC: ZFSVY) as our top large-cap European (ex-UK) picks."

For an analyst ratings summary and ratings history on Prudential plc click here. For more ratings news on Prudential plc click here.

Shares of Prudential plc closed at $20.41 yesterday.

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