Prudential plc initiated with an Outperform at Daiwa

Daiwa analyst Leon Qi initiated coverage of Prudential plc (PUK) with an Outperform rating and 1,200 GBp price target, saying the stock has an "appealing valuation." The analyst gives three reasons for the initiation at Outperform: First, Prudential is more leveraged to frontier markets in Asia, such as Indonesia, India, the Phillipines, and Vietnam, than its nearest competitor AIA Group (AAGIY), which the firm rates a Buy. Second, Prudential’s distribution channel is more balanced. Third, Prudential’s embedded value is more vulnerable compared to AIA when rates rise.