Prudential Shares are Down 10% YTD. Here’s Why This Analyst Is Bullish

Prudential (LON: PRU) shares climbed Thursday after Berenberg became the latest firm to back the Asia-focused insurer, whose stock has lagged this year despite growing analyst optimism.

Berenberg analyst Michael Huttner initiated coverage with a buy rating and a $39.30 price target on the US-listed shares, telling clients the company is positioned to benefit from rising demand for life insurance in China.

Huttner also highlighted Prudential’s growing exposure to health insurance, which he said offers a short payback period and attractive margins.

The London-listed stock rose 3.5% to 1,038.5p following the note. The US shares gained 3.9% to $28.35. Even after the gain, the shares remain down about 10% so far this year.

The bullish call follows an earlier positive stance from JPMorgan, which in mid-July placed Prudential on “Positive Catalyst Watch” into its first-half 2026 results and reiterated an overweight rating.

The firm said it expected management to make “reassuring statements” on the impact of Decree 837 on Mainland Chinese visitor demand for offshore life insurance products sold in Hong Kong, and argued the shares remained “unjustifiably inexpensive.” That catalyst has since passed, with Prudential reporting first-half results on Aug. 27.

The stock fell 2.5% on the day of those results to 1,013.5p but has since recovered the loss and more.