Prudential downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Prudential to Neutral from Overweight with a price target of $118, down from $119. The company is in the midst of a multi-year process to reshape its business mix through divestitures, acquisitions and a shift in its sales to less market sensitive products, the analyst tells investors in a research note. The firm remains concerned about weak margins in Prudential’s individual life business, near-term headwinds for net flows at PGIM, earnings dilution from divestitures, and the company’s more limited appetite for share buybacks than large peers. It sees a less compelling valuation at current share levels.