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Prudential Financial IncPRUTOP PICKMay 21, 2015Stock 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.
(Top Pick Jun 9/14, Down 1.32%) He was early. It trades at a reasonable valuation and you should see a better return of capital to shareholders over the next year or two. The valuation is attractive. Last quarter they reported a favourable capital position, which was held against them until now. More and more big corporations are off loading their pensions to companies like this one.