• PGIM, the asset management arm of Prudential Financial, recently closed its second commingled private credit fund, PGIM Senior Loan Opportunities II, securing over US$4.2 billion in capital commitments from a global set of institutional investors.
• This fund close highlights Prudential's growing appeal in alternative asset management, as its private credit platform continues to draw significant global interest despite recent earnings pressure.
• We'll explore how Prudential's continued success in private credit fundraising could impact its future earnings growth and business mix outlook.

The latest GPUs need a type of rare earth metal called Neodymium and there are only 25 companies in the world exploring or producing it. Find the list for free.

Prudential Financial Investment Narrative Recap

To be a Prudential Financial shareholder today, you need to believe in the company’s ability to balance earnings stability with business mix evolution, particularly as it continues to reposition away from legacy products and leans into alternative asset management. The recent US$4.2 billion fundraising for PGIM Senior Loan Opportunities II reinforces Prudential’s positioning in private credit, but this move does not immediately offset the ongoing earnings pressure from traditional business runoff and volatility in alternative investment income.

Among recent announcements, Prudential’s ongoing share buyback program stands out in this context. With over 4.6 million shares repurchased for about US$500.7 million since December 2024, buybacks may act as a partial counterbalance to short-term earnings softness while the results of growth in asset management, like the successful PGIM private credit fund, play out over time.

Yet, investors should keep in mind that, unlike capital raised in alternative strategies, earnings pressure from the runoff of legacy insurance blocks continues to weigh on…

Prudential Financial's outlook anticipates $62.6 billion in revenue and $4.9 billion in earnings by 2028. This projection is based on a 1.2% annual revenue growth rate and an increase in earnings of $2.6 billion from current earnings of $2.3 billion.

Uncover how Prudential Financial's forecasts yield a $115.50 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Five retail analysts in the Simply Wall St Community believe Prudential’s fair value ranges widely from US$32.83 to US$318.61. With ongoing lower profit margins and persistent earnings headwinds, you can see how differently market participants assess future prospects, explore more perspectives for a fuller view.

Explore 5 other fair value estimates on Prudential Financial - why the stock might be worth over 3x 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.

Ready To Venture Into Other Investment Styles?

Our top stock finds are flying under the radar-for now. Get in early:

• Find companies with promising cash flow potential yet trading below their fair value.
• We've found 22 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 19 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

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.