LONDON (ShareCast) - (Sharecast News) - Exane downgraded Prudential on Thursday to 'underperform' from 'neutral' as it said the investment case is about "jam tomorrow, not jam today".
Investors should reward this through a lower yield, Exane said. It noted that the capital generation from the in-force book has been growing at around 8% a year and said it thinks there's approximately $4bn of capacity for M&A.

"But this is not, in our view, sufficient to justify the low yield implied by the current valuation," Exane said.

"After a strong run in the past few months, and utilising a new valuation approach focused on distribution capacity...we downgrade to underperform."

At 1300 GMT, the shares were down 1.9% at 1,216.50p.

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