Prudential Financial (PRU) Stock Forecast & Price Target

Prudential Financial's diverse revenue streams, with approximately 50% derived from U.S. businesses and 40% from international operations, underscore its robust market presence, particularly in Japan. The company's investment management arm, PGIM, manages around $1.3 trillion in assets, contributing about 10% to overall earnings, and reflects strong financial management amidst a constructive operating environment bolstered by higher interest rates and demographic trends. Prudential has also implemented strategies to enhance business mix and reduce costs, leading to an improvement in earnings per share (EPS) power, which is expected to support positive long-term growth projections.

Prudential Financial has acknowledged an "immaterial error" in its operating earnings, leading to a reduction of $0.31 in operating EPS for the first three quarters of 2024, which constitutes a 3% decline. Additionally, the company's asset management segment, PGIM, reported assets under management of $1.38 trillion for 4Q24, falling short of expectations and marking a 1.4% quarter-over-quarter decline, further contributing to the negative outlook. The earnings challenges experienced, particularly in the Retirement Strategies segment and the underperformance of the RILA/FIA business, have resulted in downward revisions to EPS estimates for 2025 and 2026 by approximately 4%.