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Sterne Agee Stays Bullish on Prudential Following Hartford Life Insurance Unit Purchase (PRU)

By Dividend.com,  October 01, 2012, 08:28:49 AM EDT

Insurance provider Prudential Financial Inc. ( PRU ) on Monday received some continued bullish support from analysts at Sterne Agee.

The firm reiterated its "Buy" rating on PRU as well as its $78 price target, which suggests a 43% upside to the stock's Friday closing price of $54.51. Sterne Agee remained bullish on the name following the company's announcement to buy Hartford Financial's ( HIG ) life insurance unit for around $615 million.

A Sterne Agee analyst commented, "PRU announced the much anticipated purchase of Hartford's ( HIG ) individual life business, though the company provided little detail beyond the $615m ceding commission it will pay to acquire the business through a reinsurance transaction. We expect the deal to be modestly accretive to PRU's 2013E EPS (~3-4% depending on size of cost saves)."

Prudential shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of Prudential Financial ( PRU ) have a 2.66% dividend yield, based on Friday's closing stock price of $54.51. The stock has technical support in the $49-$50 price area. If the shares can firm up, we see overhead resistance around the $58-$60 price levels.

Prudential Financial Inc. ( PRU ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: HIG, PRU



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