Cracking The Code: Understanding Analyst Reviews For Prudential Financial

Throughout the last three months, 9 analysts have evaluated Prudential Financial PRU, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $120.44, a high estimate of $127.00, and a low estimate of $113.00. This current average has increased by 2.94% from the previous average price target of $117.00.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Prudential Financial's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Prudential Financial compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Prudential Financial's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Prudential Financial's market position. Stay informed and make well-judged decisions with the assistance of 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 Financial Performance

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Prudential Financial's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 10.48%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Prudential Financial's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 7.93%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Prudential Financial's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.29%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Prudential Financial's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.16%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Prudential Financial's debt-to-equity ratio surpasses industry norms, standing at 0.75. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

What Are 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 publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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