UPDATE: Keefe, Bruyette & Woods Assumes Coverage On Prudential Financial As Strong 1Q Should Improve Sentiment

In a report published Thursday, Keefe, Bruyette & Woods analyst Ryan Krueger assumed coverage on Prudential Financial (NYSE: PRU) with an Outperform rating and $100.00 price target.

In the report, Keefe, Bruyette & Woods noted, “We're assuming coverage of PRU at Outperform. PRU is the worst-performing large-cap life stock this year despite no company-specific issues, down 12% vs. -5% for peers. We expect strong 1Q14 results to provide an initial boost, with additional valuation upside for one of the cheapest life stocks in the group. PRU's strong global franchise is producing ROEs of 14.5-15.0%, rebuilt from 11.8% in 2012. We believe these businesses deserve at least a 10x multiple, or $100 on 2015E EPS. We view non-bank SIFI as the biggest risk, but don't anticipate clarity for 6+ months and expect PRU to continue managing capital in the interim.”

Prudential Financial closed on Wednesday at $80.90.