Navigating 5 Analyst Ratings For Prudential Financial

In the preceding three months, 5 analysts have released ratings for Prudential Financial PRU, presenting a wide array of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Prudential Financial, presenting an average target of $115.4, a high estimate of $132.00, and a low estimate of $103.00. Surpassing the previous average price target of $114.00, the current average has increased by 1.23%.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Prudential Financial by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Prudential Financial. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Prudential Financial's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Prudential Financial analyst ratings.

Delving into Prudential Financial's Background

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 15% of its earnings and has over $1.5 trillion in assets under management. The U.S. businesses are responsible for about 45% 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.

A Deep Dive into Prudential Financial's Financials

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Prudential Financial's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -58.79%. This indicates a decrease in the company's 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 lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -9.71%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Prudential Financial's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -2.98%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Prudential Financial's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.12%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 0.79, Prudential Financial faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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