Ken Shih, an analyst from DBS, maintained the Buy rating on Prudential. The associated price target is HK$126.00.
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Ken Shih has given his Buy rating due to a combination of factors that highlight Prudential’s promising financial outlook. The company is set to benefit significantly from the divestment of its stake in ICICI Prudential Asset Management (IPAMC), which is expected to yield approximately USD1.19 billion. This divestment is projected to enhance shareholder returns by 6.5%, contributing to an overall annual return of 7% to 9% over the next two years.
Additionally, Prudential’s business outlook remains strong, with expectations of double-digit growth in new business profit, earnings, and capital generation. The company’s operations in key markets such as Hong Kong, Singapore, and select ASEAN regions are driving this growth. Furthermore, the valuation base has been rolled over to FY26F, with a target price increase to HKD126, supported by stable earnings forecasts and a target multiple of 1.2x. These factors collectively underpin Ken Shih’s Buy rating for Prudential’s stock.
In another report released on December 9, Kepler Capital also maintained a Buy rating on the stock with a p1,326.48 price target.
Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PRU in relation to earlier this year.