Prudential PLC (LSE:PRU) shares are set to remain downtrodden under wider global pressure for the foreseeable future, Deutsche Bank analysts have warned.
The London-listed insurer faced a downgrade by the bank as a result in a note on Monday, being re-rated from a “buy” to a “hold”.
“We believe the shares are unlikely to re-rate fully until the market sees repeated evidence of double-digit growth across the book and improvements in macroeconomic and geopolitical themes,” Deutsche said.
Prudential’s move to unveil a US$2 billion (£1.6 billion) share-repurchase programme in June was a “strong show” of capital strength, according to the bank.
However, wider geographic risk was likely to continue weighing on the stock, Deutsche added, prompting the bank to scale down Prudential’s share price target by 35% to 865p.
Deutsche added Prudential’s first-half results, due on August 28, could also be weaker on tough comparables from last year, reflecting “limited growth across many of the key lines”.
Shares fell 2.5% to 629.40p on Monday, having dropped 26% so far this year.