Prudential Financial: Updating International Earnings, Rating and Price Target Unchanged

研报英文原文证据摘录

Prudential Financial: Updating International Earnings, Rating and Price Target Unchanged

Pablo S. Singzon AC North America Equity Research

(1-212) 622-2295 27 July 2026 J P M O R G A N

pablo.s.singzon@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We are Neutral. PRU has been de-risking its US liability mix,

and outside of its legacy exposures (ULSG and traditional

variable annuities), its remaining US businesses consist of

individual life, group insurance, retirement, and PGIM. Among

these lines, we are most constructive on institutional retirement

and PGIM, followed by group insurance and individual

retirement. Individual life is likely to remain a low-return

business. The international business has historically been one of

PRU’s more attractive assets, but regulatory scrutiny of sales

YTD 1m 3m 12m practices in Prudential of Japan could hurt the franchise over the

Abs 6.3% 12.9% 27.3% 15.0% medium term, particularly if an elevated number of sales agents

Rel -2.0% 12.2% 23.9% -1.5%

and customers choose to leave. From a financial standpoint,

Company Data earnings in the business are set to decline in the next one to two

Shares O/S (mn) 350 years. From a stock perspective, PRU is neither too cheap to

52-week range ($) 120.58-91.89 justify being positive despite its issues in Japan, nor is too

Market cap ($ mn) 42,021.99

Exchange rate 1.00 expensive to justify being negative, especially when evaluated

Free float (%) 99.7% on 2028 earnings when most of the negative financial impacts in

3M ADV (mn) 1.93 Japan would have played out.

3M ADV ($ mn) 203.9

Volatility (90 Day) 23

Index S&P 500

Performance DriversBBG ANR (Buy | Hold | Sell) 0|14|4

Key Metrics (FYE Dec)

$ in millions FY25A FY26E FY27E FY28E

Financial Estimates