Deutsche Bank Downgrades Prudential Financial (PRU) to Hold

Deutsche Bank downgraded Prudential Financial (NYSE: PRU) from Buy to Hold with a price target of $90.00 (from $101.00). Analyst Yaron Kinar pointed to under-hedging in interest rates.

"Our Buy thesis had been predicated on improving capital flexibility as well as on PRU's business model being less interest rate sensitive compared to peers'. However, interest rate under-hedging has exposed shortcomings in both legs of our thesis and we would prefer to revisit the name in 2H15, after the annual assumption review is complete and a decision on buyback authorization is made. We are also decreasing our 2015E-2106E EPS, to $9.60 and $10.25, to reflect lower-than-expected baseline earnings in 2014 and lower interest rates," said Kinar.

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

Shares of Prudential Financial closed at $77.80 yesterday.

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