leadf
logo-loader
viewPrudential PLC
(
LSE:PRU
)

Looking for undervalued blue-chip stocks? Try the insurance sector, says this influential American bank

Morgan Stanley has found what it thinks are some anomalous valuations

Prudential PLC -

Morgan Stanley has taken a look at the European insurance stocks and singled out two in the UK with potentially significant upside – almost 45% in one case.

In a wide-ranging note, the American bank said the sector had been a recent underperformer “driven by lower dividend and earnings revisions”.

It marked Prudential PLC (LON:PRU) in the life and pensions sector as possibly re-rating once investors zone in on its growth prospects in Asia after its demerger.

Reflective of Morgan Stanley’s bullish view, the target price of 1,706p a share is around 30% ahead of its current valuation.

Among the general insurers, Lancashire Holdings (LON:LRE) is significantly undervalued, the bank thinks. Its target price is around 45% ahead of the prevailing stock price.

Also seen as having further to run are Direct Line (LON:DL.) and Phoenix Group Holdings (LON:PHNX).

Quick facts: Prudential PLC

Follow
LSE:PRU

Price: 1445.5 GBX

Market Cap: £37.81 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Hochschild Mining reveals 'profitable' PEA on its heavy rare earths project...

Hochschild Mining Head of Investor Relations Charles Gordon joined Proactive New York to discuss the Peru-based gold and silver miner's recent developments within its heavy rare earths project, recently renamed Aclara. Gordon says the group recently revealed a preliminary economic assessment...

15 hours, 37 minutes ago

2 min read