Prudential’s (LON:PRU) growth profile is likely to come under scrutiny, says Jefferies International, which today downgraded the insurer to ‘hold’ from ‘buy’.
Analyst Mark Cathcart highlights risks to Prudential’s international businesses including weak Chinese equity markets, economic problems in Indonesia and changes to fiduciary rules in America.
He also highlights that the impact of the EU’s ‘Solvency II’ regulations could see constraints upon margins.
Cathcart says he continues to view Pru as a ‘high quality franchise’ with above average growth prospects, justifying a ‘top end’ valuation in the sector, however, his price target reduces to 1753p from 1802p (current price 1629p).
Elsewhere, on this July morning the blue-chip broker upgrades and downgrades were a little thin on the ground.
Citigroup, however, upgraded HSBC (LON:HSBA) to ‘buy’ from ‘hold’ with a 635p price target.
Online gambling and financial trading software group Playtech (LON:PTEC) sees its price target lifted to 1040p from 950p from Deutsche Bank, which already rates the stock as ‘buy’.
Analyst Richard Carter says “everything changes, but everything stays the same” as he reviews recent transactions to acquire Plus500 and TradeFX.
Cantor Fitzerald pumps up bicycle and car accessory retailer Halfords (LON:HFD), with the price target rising to 565p from 500p, but repeating a ‘hold’ the recommendation is still somewhat flat.