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Prudential Financial IncPRUTOP PICKJun 09, 2014Stock price when the opinion was issued
As of Jun 16, 2026. Market Open.
An Asian pure-play in insurance. The overall Asian market was down last year. They achieved all their growth goals in the past year, though. They will benefit from long-term secular trends in Asia. He expects good penetration rates in China where the middle is growing, so PRU is well-positioned. Today, he heard that Sun-Life is taking a trip to China to learn about that market.
US Lifeco vs Financials PRU-N is at risk to interest rates on their premiums collected as he thinks yields will remain neutral. He is not keen on BAC-N either at this point for the same views of the yield curve. Things can't get any better for each right now -- a no man's land right now. He sees a bit better bid for Lifecos, but mostly from a defensive position. There are more compelling areas than these two spaces.
Represents good value relative to Manulife (MFC-T) and Sun Life (SLF-T). Trades at a discount to BV, while the other 2 trade at a bit of a premium. Feels there is the secular trend of companies outsourcing their pension benefit obligations. Regulatory headwinds are now behind them. A globally significant financial institution. Capital requirements look like they are not going to be all that onerous, which enables them to buy back more stock. Hopefully, within a few months, you should see an announcement regarding a buyback. Dividend yield of 2.38%.