Broker snap: Panmure Gordon lifts target for Prudential

16th Sep 2013 10:40

Panmure Gordon has hiked its target price for insurance and investment giant Prudential from 1,376p to 1,453p and retained its 'buy' rating, saying that the business is undervalued by the market.Last month's first-half results came in better than Panmure had expected with operating profits up 22% at £1,415m (forecast: £1,306m).The broker has raised its earnings per share estimates for this year by 4.6% to 81.5p and for next year by 5.1% to 91.1p.Panmure explained that Prudential's three-year financial targets announced at a UK investor conference in December 2010 will likely be met within their timescale (before 2013 year-end). Ahead of another investor event later this year (December 3rd), analyst Barrie Cornes said: "The shares reacted well to the announcement of the targets (they were trading at 568p per share at the time) and we think that the share price would react in a similar manner if stretching new targets are unveiled in Dec 2013.""We maintain our view that Pru is undervalued and that the market currently fails to reflect the value of the four key businesses in the share price."The stock was 1.75% higher at 1,187.48p by 10:41 on Monday.BC