Prudential caught a tailwind today as US bank Jefferies upped its forecast for growth from the insurer’s Hong Kong office.
Premiums in HK are now forecast to grow by 36% in 2023, 29% in 2024 and 20% in 2025, which the bank says is way ahead of the consensus numbers in all three years.
Jefferies also says it is now “highly likely” that the run rate of sales has recovered to pre-pandemic levels.
Even with this catalyst, the bank adds that the share price has yet to respond with Pru still rated well behind its HK-listed pan-Asian peer AIA.
Buy with a 2,020p target, up from 1,900p previously, is the bank’s view.
Shares were up 2.5% today at 1,143p.