JPMorgan reiterates 'overweight' on Prudential; cites cash conversion, buyback upside

Prudential Financial (PRU) raised senior unsecured notes in August 2026, with coupons ranging from 4.60% to 5.45%, and reported Q2 adjusted operating income exceeding estimates. The company is focusing on fee-based and international businesses while managing U.S. legacy products. Investors are watching leverage and management performance, with shares potentially undervalued according to some analysts.

JP Morgan anticipates a positive investor reaction to Prudential PLC's H1 2026 results, which met market expectations with an 8% rise in new business profit at constant exchange rates. Prudential reaffirmed its full-year growth targets, including double-digit increases in new business profit, operating free surplus, adjusted earnings per share, and dividend per share. JP Morgan analyst Farooq Hanif maintains an overweight rating with a 1,480p price target, noting regional variations in performan

Prudential plc (PRU) reported double-digit growth in H1 2026, driven by Hong Kong, ASEAN, and asset management. The company reaffirmed its 2026-27 guidance and plans capital returns. PRU's subsidiary PCHL sold ICICI Prudential AMC shares for ~INR 30bn, reducing its stake to ~32.59%. Proceeds will fund share buybacks.

Jefferies maintained a 'buy' rating on Prudential PLC (LSE:PRU), citing strong demand in Hong Kong. The company reported first-half 2026 new business profit of $1.384 billion, exceeding estimates. Adjusted operating profit rose 9% to $1.81 billion, and adjusted profit after tax increased 10% to $1.52 billion. Prudential added $300 million to its share buyback program, funded by a reduction in its Indian shareholding.

Nvidia's (NVDA) shares rose after reporting a 106% year-on-year revenue increase to $96.2bn, beating expectations. The company issued full-year guidance, projecting 70% revenue growth for 2028. Prudential (PRU) increased its share buyback program by $300mn and raised its interim dividend by 15%. Halfords (HFD) upgraded its profit guidance to £55mn-£65mn for FY27, citing strong summer sales.

Prudential plc announced the disposal of a 2% stake in ICICI Prudential Asset Management Company Limited (IPAMC) on Indian stock exchanges, reducing its holding to 32.59%. The sale, at INR 3,065 per share, generated INR 30 billion (US$0.3 billion) in proceeds, with a 4.9% discount to the previous closing price. Prudential plans to return the proceeds to shareholders via buybacks, aiming to comply with Indian public float regulations.