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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Financial Services

Prudential needs lift out of the doldrums in next week's interims

Prudential PLC's (LSE:PRU) switch to focus on Asia with Hong Kong and China central to its plan has backfired a little given the recent economic problems in the region.

Shares in the life group sit at a twelve-year low and are down by a third over the past twelve months.

Deutsche Bank recently downgraded Pru on the basis that proof is needed its growth strategy is working and some of the macro headwinds are easing to spark a share price recovery.

Next week’s interims offer an opportunity to do just that, but with Hong Kong still its most important market the challenges remain.

Chief executive Anil Wadhwani’s plan is for New Business Profit (or NBP) to see compound growth of 15% to 20% between 2022 and 2027 and a reiteration of that target will be the minimum expected in 28 August's update.

Prudential launched a $2 billion share buyback programme in June, currently around 9% of the company’s current stock market capitalisation and with a target completion date of mid-2026, so, if nothing else, there will be one buyer on Wednesday.

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