Deutsche Bank Starts Prudential Financial (PRU) at Buy

Deutsche Bank initiates coverage on Prudential Financial (NYSE: PRU) with a Buy. PT $67.00.

The firm comments, "Coming off of a weak and “noisy” 2012, we believe that the company’s ROE should increase to 12.8%, well-above its cost-of-capital, in 2013. The company’s protection orientation, particularly in its International Insurance segment (which accounts for 50% of earnings), offers earnings protection. Moreover, pricing increases in the under-performing Group Insurance and a business mix shift with Retirement and US Insurance should all benefit results." They also said fears regarding potential non-bank SIFI designation and around VA business are the two main overhangs on the name and are overblown.

The firm's operating EPS forecast estimates for FY12E-FY14E are $6.15, $7.85 and $9.05, respectively – suggesting above-group-average EPS growth.

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 $55.79 yesterday.

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