Insurer Prudential PLC (LON:PRU) got a lift today from a target hike from German broker Berenberg, which highlighted a re-rating potential for the stock.
Berenberg raised its target price for the FTSE 100-listed firm to 2,200p from 1,783p, and reiterated a ‘buy’ recommendation on the stock.
In early morning trading, Prudential’s shares were 0.5%, or 7.5p higher at 1,620.5p.
In a note to clients, Berenberg’s analysts said: “Prudential’s share price has historically correlated pretty well to the trajectory of embedded value, appraisal value and earnings.
“For the last two years, the shares have taken a breather and this has resulted in a very sizeable valuation discount.”
But, they added: “The upward trajectory of the key metrics has continued, however, and the shares now have both excellent compounding and re-rating potential.”