JP Morgan expects investors to react positively to Prudential PLC (LSE:PRU) half-year results, after the insurer reaffirmed its full-year growth targets despite a slower first-half performance.
The bank, whose analyst Farooq Hanif rates the insurer overweight with a price target of 1,480 pence, said new business profit rose 8% at constant exchange rates in the first half of 2026.
That figure was in line with market consensus, though below the double-digit new business profit growth Prudential expects for the full financial year.
New business profit fell in Hong Kong during the period, which JP Morgan attributed to an unusually strong comparator in the first half of 2025.
The bank expects double-digit new business profit growth in Hong Kong for the financial year as the high comparator eases from September onwards.
On 27 August, in its H1 results, Prudential reiterated its targets for double-digit growth in new business profit, operating free surplus and adjusted earnings per share for the 2026 financial year, along with double-digit growth in dividend per share.
Mainland China is proving more challenging, with margin compression and tough comparators expected to leave new business profit flat for the year.
JPM said stronger growth in Hong Kong, Malaysia and other markets should offset the weakness in mainland China.
Prudential is increasing its share buyback programme for the financial year by 300 million US dollars, taking the total to 1.5 billion US dollars.
JPM said cash flow also looked stronger than consensus forecasts, with positive expense variances beginning to emerge.
