Prudential’s share price is lagging behind the recovery in Hong Kong according to analysts at Deutsche Bank, which believes as a result the shares are “deeply oversold”.
“Despite the re-opening of the border between Hong Kong and China and broad equity market growth since the beginning of the year, Prudential's share price has only risen 2% year-to-date”.
In addition, the market is giving no credit for a safe approach to the investment mix or the new chief executive's intent for the company
“As such, we believe the shares are ‘deeply oversold’, at a ‘55% discount to AIA on an IFRS 4 PE basis.
“Putting this into context, our new 1,550p target price provides 35% of upside, which would take the discount to AIA to a more normal 20% level.”
Buy is the investment view, but shares were flat at 1,152p.