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Prudential Financial IncPRUBUYOct 24, 2017Stock price when the opinion was issued
As of Jun 12, 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.
Prudential Financial (PRU-N) or the banks? He would own both. You need to diversify within your financial sector. The banking sector grows differently than life insurance. Life insurance is a bit more dependent on where interest rates are heading, and he thinks they are going to continue to creep higher. This company has a very strong balance sheet and a tremendous amount of capital in their balance sheet.