Prudential downgraded to Underweight from Equal Weight at Wells Fargo

Wells Fargo analyst Elyse Greenspan downgraded Prudential Financial (PRU) to Underweight from Equal Weight with an unchanged price target of $101. The analyst cites relative value for the downgrade, saying Prudential’s valuation has expanded relative to MetLife (MET) versus historical levels. Greenspan expects higher earnings volatility at Prudential relative to MetLife, and says Prudential has less capital flexibility as it absorbs a year-end statutory charge and has down-streamed capital to the operating companies to support growth. She also expects results from Assurance IQ to remain challenged, which could lead to a further goodwill impairment.