JPMorgan keeps Prudential at 'overweight' on cash conversion and buyback potential

What Brokers Say Finance Written by: Ian Lyall 13:00 Fri 04 Sep 2026 --> Edited by: Jamie Ashcroft Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Prudential PLC ( LSE:PRU ) View Price & Profile JPMorgan keeps Prudential at 'overweight' on cash conversion and buyback potential Published: 13:00 04 Sep 2026 BST JP Morgan has reiterated its overweight rating on Prudential PLC (LSE:PRU) , saying the negative market reaction to the insurer’s first-half results was overdone. The bank said concerns over first-half new business profit growth and the outlook for Mainland China Visitor business in Hong Kong after Decree 837 tax changes were understandable. JP Morgan said the market was extrapolating too much from a first-half result affected by changes in business mix and tough comparators. The bank said Prudential met or exceeded consensus expectations for first-half 2026 new business profit, earnings and cash flow. Management also provided detailed regional guidance that JP Morgan said supported improved growth momentum in the second half of 2026. JP Morgan said Prudential’s shares were pricing in a contraction in growth that it did not expect to occur. The shares traded at about 9.5 times estimated 2027 earnings, a 15% discount to European insurers that the bank said offered half Prudential’s growth. JP Morgan also said Prudential traded at a discount of about 25% to 30% to AIA Group, at 0.75 times estimated 2027 embedded value. The bank said Prudential’s free cash generation implied a high single-digit free cash flow yield and pointed to continued upside to its capital-return forecasts. JP Morgan said the combination of Prudential’s growth outlook and valuation supported its positive stance on the shares. The bank’s assessment also highlighted the potential for stronger capital returns, with free cash generation providing scope for its forecasts to move higher. Continue reading