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Analysts told investors in a note that they expect PRU will re-rate as it “proves out its transformation strategy” and reflects the potential for increased share repurchases as a catalyst.
“We see considerable margin for error, as PRU’s catalysts appear largely favorable, significant de-risking and reserving recently took place, and investors have been disappointed for a lengthy period,” the analysts wrote.
“We think PRU’s 2024 repurchases could exceed $2 billion, versus our prior $1.05 billion expectation, given its favorable capital position versus its target buffer.”
Other positives they pointed to include the potential to sell even more non-core operations and less appetite for M&A, PRU’s core businesses doing well, and the variable annuity segment being de-risked via the Fortitude deal.
