UPDATE: JPMorgan Downgrades Prudential Financial (PRU) to Neutral
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JPMorgan analyst Jimmy Bhullar downgraded Prudential Financial (NYSE: PRU) from Overweight to Neutral with a price target of $91.00.
The analyst comments "Our revised rating reflects a mixed outlook for business trends, risk in PRU’s M&A strategy, and a less attractive valuation. On a positive note, PRU has strong Japan and asset management franchises, and its business mix should help sustain a superior ROE. Also, PRU has ample capital to maintain its significantly above-average dividend. On the other hand, PRU’s desire for M&A entails risk and has a high barrier for success versus buybacks at its current valuation. Also, the stock is close to our target. Valuation is still depressed, but is less enticing given expansion in the P/E and P/BV multiples despite reductions in EPS estimates."
Shares of Prudential Financial closed at $89.02 yesterday.
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