Prudential PLC (LSE:PRU)’s annual results were on “either side of the line,” according to Deutsche Bank analyst Rhea Shah with APE and NBP missing consensus marginally but IFRS profit, balance-sheet metrics and the dividend marginally better.
Shah said the focus today is likely going to settle on the outlook for 2023 (where APE has already grown 15% YoY in January-February with Hong Kong offshore sales so far being predominantly savings-related) and the CEO’s new strategy.
On the latter, nothing new has been provided, the analyst wrote, with the CEO to update with the interim results in August.
Shah said: “At first glance, this could disappoint today, as the market had been building in anticipation (prior to the SVB selloff) about a strategy update into the shares, which had closed the PE-based valuation gap vs AIA by 15% over recent months.”
The lack of immediate catalyst may not see the shares push higher today, Shah concluded.
Shares in Prudential fell 6.8% to 1,102.50p as financial stocks tumbled once more as the fall out from the SVB continues.