Barclays downgrades Prudential to Underweight on ‘too many ‘headwinds’

Barclays downgraded Prudential (PRU) to Underweight from Equal Weight with a price target of $91, down from $110. The company has “too many headwinds to work through,” the analyst tells investors in a research note. Barclays says the headwinds include headwinds include the regulatory discipline at Prudential of Japan, pressure on its cash flow, the potential of downward earnings revisions, and an underperforming secondary guaranteed universal life block. Directional signals around Prudential’s Japan issues have worsened over time, adds Barclays.