Demystifying Prudential Financial: Insights From 16 Analyst Reviews

During the last three months, 16 analysts shared their evaluations of Prudential Financial PRU, revealing diverse outlooks from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Prudential Financial, revealing an average target of $121.25, a high estimate of $134.00, and a low estimate of $101.00. Highlighting a 3.31% decrease, the current average has fallen from the previous average price target of $125.40.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Prudential Financial. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|-----------------------|---------------|---------------|--------------------|--------------------| |Elyse Greenspan |Wells Fargo |Lowers |Equal-Weight | $108.00|$118.00 | |Ryan Krueger |Keefe, Bruyette & Woods|Lowers |Market Perform | $120.00|$125.00 | |Brian Meredith |UBS |Lowers |Neutral | $122.00|$130.00 | |John Barnidge |Piper Sandler |Lowers |Neutral | $122.00|$124.00 | |Jimmy Bhullar |JP Morgan |Lowers |Neutral | $126.00|$128.00 | |Nigel Dally |Morgan Stanley |Lowers |Equal-Weight | $128.00|$136.00 | |Elyse Greenspan |Wells Fargo |Raises |Equal-Weight | $118.00|$113.00 | |Ryan Krueger |Keefe, Bruyette & Woods|Lowers |Market Perform | $125.00|$129.00 | |Alex Scott |Barclays |Raises |Equal-Weight | $134.00|$128.00 | |Alex Scott |Barclays |Raises |Equal-Weight | $128.00|$127.00 | |Jack Matten |BMO Capital |Announces |Underperform | $101.00|- | |Alex Scott |Barclays |Lowers |Equal-Weight | $127.00|$129.00 | |Ryan Krueger |Keefe, Bruyette & Woods|Lowers |Market Perform | $129.00|$135.00 | |John Barnidge |Piper Sandler |Lowers |Neutral | $124.00|$127.00 | |Elyse Greenspan |Wells Fargo |Lowers |Equal-Weight | $113.00|$115.00 | |Elyse Greenspan |Wells Fargo |Lowers |Equal-Weight | $115.00|$117.00 |

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Prudential Financial. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Prudential Financial compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Prudential Financial's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Prudential Financial's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Prudential Financial analyst ratings.

All You Need to Know About Prudential Financial

Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset-management products. While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan. The company's investment management business, PGIM, contributes approximately 10% of its earnings and has around $1.3 trillion in assets under management. The US businesses are responsible for about 50% of earnings and can be classified into Institutional Retirement Strategies, Individual Retirement Strategies, Group Insurance, Individual Life Insurance, and Assurance IQ. Finally, the international business segment of the company contributes approximately 40% of earnings with a strong market position in Japan.

Prudential Financial's Economic Impact: An Analysis

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Challenges: Prudential Financial's revenue growth over 3M faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -17.24%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Prudential Financial's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -0.44%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Prudential Financial's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -0.19%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Prudential Financial's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.01%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.77, caution is advised due to increased financial risk.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.