Analyst Suneet Kamath of Jefferies maintained a Buy rating on Prudential Financial (PRU – Research Report), retaining the price target of $149.00.
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Suneet Kamath’s rating is based on a combination of factors, including Prudential Financial’s expected earnings growth and financial targets. Despite the company’s fourth-quarter earnings per share missing expectations, Prudential’s outlook remains optimistic with projected core earnings per share growth of 5-8% annually through 2027. This projected growth rate aligns closely with Kamath’s own forecasts, indicating potential for positive future performance.
Moreover, Prudential’s focus on increasing top-line growth across all business segments, supported by favorable market conditions, contributes to the Buy rating. The company also maintains a strong capital position with significant liquidity, and its free cash flow conversion guidance remains stable at around 65% of net income. Kamath believes that sentiment around Prudential is currently too negative and that the company’s strategic leverage in growth areas, particularly in US Life, presents an opportunity for investors.