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Prudential offers sees 50% return potential but UBS sees short-term headwinds
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Prudential offers sees 50% return potential but UBS sees short-term headwinds Proactive uses images sourced from ShutterstockPrudential PLC (LSE:PRU) numbers later this month are likely to be weaker than the market is forecasting, UBS believes, though it is confident that long-term growth prospects in Asia remain intact.
UBS forecasts annual premium equivalent sales and new business profit will both come in around 5% below Visible Alpha consensus estimates.
Analyst Will Hardcastle expects weaker sales in Hong Kong, Indonesia and Singapore, alongside pressure on new business margins in China.
He said investors are also likely to focus on Prudential's agency business after first-quarter sales in Hong Kong fell around 10%.
Allianz's acquisition of HSBC's Singapore business and Ageas's sale to Maybank were both agreed at more than 1.5 times comprehensive equity, while Prudential trades at around 0.8 times.