UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on Prudential Financial Following Management Meeting

In a report published Wednesday, Credit Suisse analyst Thomas Gallagher reiterated an Outperform rating on Prudential Financial PRU, and raised the price target from $70.00 to $75.00. In the report, Credit Suisse noted, “PRU seems more optimistic about the future capital framework for non-bank SIFIs following recent comments made by Fed officials that indicated that insurers would be treated differently than the banks. PRU doesn't see the recent volatility in Japan (big increase in equity markets, volatility in JGB yields, and weaker yen) having a big impact on its business. We would expect PRU's ROE goal over the next several years to remain near its near term target of 13 to 14%. PRU continues to be committed to the US variable annuity business, but will also be mindful to limit the size in proportion to total company capital and earnings in the 20-25% range In addition, following the increase in peer multiples, especially in market sensitive names, we are increasing our target price on PRU to reflect higher valuations in addition to the move up in forward interest rates. We apply a blended 8.5x 2014 EPS estimate and 1.2x BV ex. AOCI and FX translation adjustment to arrive at our new $75 (from $70) target price, up from $70.” Prudential Financial closed on Tuesday at $67.87.