09:30 AM EDT, 05/08/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price by $7 to $122, valuing PRU shares at 8.8x our 2025 operating EPS estimate of $13.90 and at 9.5x our 2024 EPS estimate of $12.87, versus the five-year average forward multiple of 7.8x and a peer average of 8.7x. We attribute the shares' recent strength to enthusiasm over PRU's first quarter 2024 pension risk transfer (PRT) activity that helped produce the 70% surge in Q1 insurance premiums. However, a 48% rise in Q1 expenses and a 65% surge in Q1 benefit costs actually led to Q1 EPS that lagged our estimate. At current levels, the shares trade at 9x our 2024 EPS estimate of $12.87, a premium to peer and historical averages. We expect this premium valuation to be supported by the uptick in PRT activity, though we caution that Q1 top-line results are not likely a run rate. Weighing the positives of higher PRT activity with mixed results elsewhere, we view the shares as fairly valued, but worth holding, given their current yield of 4.5%.