UPDATE: Deutsche Bank Initiates Prudential Financial at Buy on Relative Upside

Deutsche Bank initiated coverage on Prudential Financial, Inc.

with a Buy rating. Deutsche Bank said, "We are initiating coverage of Prudential with a Buy rating and 12-month price target of $67. Our operating EPS forecast estimates for FY12E-FY14E are $6.15, $7.85 and $9.05, respectively – suggesting above-group-average EPS growth. … 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." Prudential Financial closed at $55.79 on Tuesday.