The FTSE 100-listed insurer Prudential PLC (GB:PRU) yesterday reported growth in its Q3 sales and profit. The continued momentum reflects the effectiveness of the company’s business strategy across multiple markets and channels. However, the company also experienced a modest decline in new business expansion as compared to the first half.
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Prudential PLC is a British insurance company, serving a customer base of 18 million individuals across 24 markets in Asia and Africa. The company provides life and health insurance as well as asset management services.
Q3 Update Snapshot
For the nine-month period, the new business profits grew by 37% to $2.14 billion as compared to last year. This was slightly down from the 39% growth achieved in the first six months of the year.
During the same period, APE (annual premium equivalent) sales increased by 40% to $4.4 billion, primarily driven by Hong Kong. This growth was also supported by increased sales to both Chinese Mainland visitors and domestic customers when compared to the same period in the previous year.
Analysts’ Reactions
Analysts have expressed their positive outlook after the encouraging numbers.
Yesterday, Andrew Sinclair from Bank of America Securities reiterated his Buy rating on the stock, predicting an upside of 45% in the share price. Additionally, Bernstein analyst Tianjiao Yu recommended buying the stock, forecasting a growth rate of 66.4%.
Analyst Farooq Hanif from J.P. Morgan has a price target of 1,500p on the stock. He also confirmed his Buy rating on the stock yesterday.
Analyst Ashik Musaddi of Morgan Stanley forecasts lower growth in the second half of 2023, due to “normalisation in HK volumes and lower volumes in China JV.” Nonetheless, he is bullish on the growth of new business in Hong Kong, Indonesia, Malaysia, and Singapore. Musaddi reiterated his Buy rating on the stock yesterday with a forecast of 40% upside potential.
Is Prudential a Good Stock to Buy Now?
According to TipRanks, PRU stock has a Strong Buy rating, backed by a total of 13 recommendations, of which 12 are Buy. The Prudential share price target is 1,440.9p, which implies a huge upside of 60% from the current trading level.
