• In the past week, Prudential Financial reached a US$100 million settlement with the U.S. Federal Trade Commission regarding its Assurance IQ unit, while also announcing continued share buybacks, new fixed-income offerings, and a quarterly dividend of US$1.35 per share payable in September 2025.
• PGIM, Prudential's asset management division, secured over US$4.2 billion in its latest middle market private credit fund, showing ongoing institutional investor confidence even as Prudential resolves regulatory challenges.
• We'll consider how resolving the Assurance IQ settlement and ongoing capital management measures may impact Prudential Financial's long-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Prudential Financial Investment Narrative Recap

To be a shareholder in Prudential Financial today, you need to believe in the long-term global demand for retirement and insurance solutions, PGIM’s expanding footprint, and the company’s ability to manage through near-term earnings headwinds and regulatory complexity. The recent US$100 million settlement related to Assurance IQ addresses a key overhang, but it does not substantially alter the main short-term catalyst, earnings stabilization, or ease the biggest risk: persistent legacy annuity runoff pressures on profits.

Of the company’s recent announcements, ongoing share buybacks are most relevant, as they reinforce Prudential’s commitment to returning capital even while addressing regulatory matters. This capital management approach continues alongside efforts to resolve headline risks and improve investor confidence.

But in contrast to these capital returns, investors should pay close attention to the risks still posed by...

Prudential Financial's outlook anticipates $64.1 billion in revenue and $4.8 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 2.7% and an increase in earnings of $3.2 billion from the current $1.6 billion.

Uncover how Prudential Financial's forecasts yield a $115.50 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community set fair value estimates for Prudential Financial as low as US$32.83 and as high as US$308.57. Given these differing outlooks and ongoing earnings volatility tied to legacy variable annuity runoff, your view may differ as well, explore other perspectives to see what fits your expectations.

Explore 5 other fair value estimates on Prudential Financial - why the stock might be worth over 2x more than the current price!

Build Your Own Prudential Financial Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Prudential Financial research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Prudential Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Prudential Financial's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.