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Prudential plc, a life insurer, has experienced poor share price performance despite strong earnings and dividends growth. Lessons for income-focused investors: avoid companies with multiple unrelated businesses and don't make optimistic assumptions about future growth rates. Selling Prudential at a loss is a rational decision due to its lack of focus, weak competitive advantages, and unattractive share price and dividend yield.
Prudential chief executive Anil Wadhwani has sold Barclays on his strategy for the future, with the bank saying it is an ambitious, well-rounded and (in its view) achievable growth plan. Upgrading technology, increasing adoption of digital tools, improving agency and bancassurance productivity and targeting scale in health insurance are key self-help measures.
Prudential has been grappling with strict COVID containment policies in Greater China, which has battered its business in Hong Kong. Although still well down from pre-COVID levels, there are signs that visitor numbers and business are recovering. Along with a recovery in Hong Kong, Prudential has great growth prospects in developing Asian markets.
Investors with an interest in Insurance - Multi line stocks have likely encountered both Axa Sa (AXAHY) and Prudential (PUK). But which of these two stocks offers value investors a better bang for their buck right now?
Investors with an interest in Insurance - Multi line stocks have likely encountered both Axa Sa (AXAHY) and Prudential (PUK). But which of these two companies is the best option for those looking for undervalued stocks?
Investors with an interest in Insurance - Multi line stocks have likely encountered both Axa Sa (AXAHY) and Prudential (PUK). But which of these two stocks offers value investors a better bang for their buck right now?
Lloyds Banking Group PLC (LSE:LLOY), Intertek Group PLC (LSE:ITRK), Melrose International PLC, Prudential PLC and WPP PLC are among the blue-chip names among the updated top picks list from UBS analysts, despite a UK macroeconomic backdrop that is less than inspiring. Following on from note at the start of 2023 on analysts' top-conviction selections, the investment bank research team asked sector analysts to reassess their 'top picks' and 'avoids' for the UK market.
AXAHY vs. PUK: Which Stock Is the Better Value Option?
JP Morgan has reiterated its 'overweight' rating on Prudential PLC (LSE:PRU), stating that the insurance group's shares were oversold following its lower-than-consensus new business profit for the 12 months just gone. In a recent note, the investment bank expressed confidence in the valuation case for Prudential and highlighted several positive catalysts that could support a re-rating of the shares relative to its closest peer, AIA, in 2023.
Prudential and Beazley are ways to take advantage of the sell-off in insurance stocks following the collapse of SVB, analysts at JP Morgan suggest. Concern over the sector has ranged from liquidity, mark-to-market losses on bonds and asset risk.