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Highlights

  • Jefferies reaffirms a Buy rating on Prudential with a target price of AUD 28.13 (GBP 1,339.5), implying 36.67% upside.

  • Panmure Liberum reiterates a Buy call with a target price of AUD 33.54 (GBP 1,597.1), projecting a substantial 62.99% upside.

  • Q1 2025 business update shows new business profit up 12% and APE sales up 4%.

Prudential Plc (LSE:PRU), a leading international life and health insurer, received renewed backing from key analysts, with Jefferies and Panmure Liberum both maintaining Buy ratings on the stock. The updated targets underscore confidence in Prudential’s growth trajectory following its Q1 2025 performance.

Jefferies View: Buy with 36.7% Upside

Jefferies analyst Philip Kett reaffirmed a Buy recommendation on Prudential, assigning a target price of AUD 28.13 (GBP 1,339.5). This reflects a 36.67% potential upside from the current market price of AUD 20.58 (GBP 987.8).

Panmure Liberum: Buy with 63% Upside

Meanwhile, Panmure Liberum’s Abid Hussain delivered one of the most bullish outlooks on Prudential, also rating it a Buy with a target price of AUD 33.54 (GBP 1,597.1). This valuation implies a remarkable 62.99% upside from current trading levels.

Q1 2025 Business Update

In its latest trading update, Prudential reported a 12% rise in new business profit to USD 608 million and a 4% increase in annual premium equivalent (APE) sales to USD 1.68 billion. Notably, Hong Kong, Mainland China, and Singapore delivered double-digit profit growth, benefiting from higher volumes, product innovation, and margin improvements.

Eastspring, Prudential’s asset management arm, maintained funds under management at USD 256.2 billion, supported by net inflows of USD 2.6 billion from both insurance and third-party clients.

FY24 performance

Prudential reported 8% year-on-year rise in the adjusted operating profit on an AER basis (10% CER) to $3,129 million in FY24. Adjusted operating profit after tax increased to $2,582 million, up 5% on AER (7% CER). Basic earnings per share based on adjusted operating profit improved slightly to 89.7 cents, reflecting growth of 1% (2% CER). IFRS profit after tax saw a significant uplift, climbing 41% to $2,415 million (43% CER), while basic earnings per share based on IFRS profit after tax surged 35% to 84.1 cents. 

With both Jefferies and Panmure Liberum reiterating Buy ratings, Prudential’s investment case might be underpinned by operational momentum in Asia, expanding product lines, and resilient agency networks.