Broker snap: Prudential to outperform, says Credit Suisse

22nd Nov 2011 12:07

Credit Suisse has reiterated its outperform rating and 888p target price for insurance giant Prudential despite the macroeconomic pressures that are continuing to overshadow operations across the whole industry.In a research note covering the European Insurance industry, the broker says that sees three key takeaways now that results season is over:"1) P&C [property and casualty] pricing trends continue to broaden out; 2) net flows are deteriorating driven by increased competition from bank offerings; 3) capital positions remain solid for now."Credit Suisse says that while the overall sector performance will likely remain linked to developments in Spain, Italy and other peripheral sovereigns, valuations still remain below historic averages, suggesting that "significant value exists".Prudential was gaining 2.36% by 12:07 on Tuesday, trading at 584.5p.In addition to Prudential, the broker confirms an outperform rating on European peers Allianz, AXA, Tryg and ING.BC