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Research Alert: CFRA Keeps Buy Recommendation On Shares Of Prudential Financial, Inc.

· 02/05/2021 04:44

09:40 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by $3, to $93, or 7.8x our 2021 operating EPS estimate of $11.90 (raised today by $0.30) and 7.2x our 2022 operating EPS estimate of $12.95, versus the shares' five year average forward multiple of 8x and a peer average of 7.9x. Q4 operating EPS of $2.93 versus $2.24 topped our $2.50 EPS estimate, the $2.57 consensus EPS forecast amid 40% higher PGIM asset management profits, 5.6% higher International earnings,and 4.0% lower U.S. profits on pandemic claims. Full year 2020 operating EPS of $10.21 versus $11.69 topped our $9.77 EPS estimate, and the $9.88 consensus forecast on similar drivers. Currently trading at 7x our 2021 EPS estimate and yielding 5.6% (following a 4.5% hike), we view the shares as undervalued versus peer and historical levels and see PRU's $1.5B share buyback plan, $750M cost cutting initiative, $5B-$10B in planned capital reallocation to higher growth areas, and contributions from its PGIM asset management arm providing the shares with a catalyst.