The firm reduced the price target to $95 from $97 for the financial products and services company, and said it reiterated its "outperform" rating due to lower retirement.
Credit Suisse set annual EPS estimates to $9.46 from $9.73 for fiscal 2014, and to $10.19 from $10.39 for fiscal 2015.
"We expect the company to continue to buy back shares at a similar pace under the current repurchase authorization ($750mm left as of 3Q14)," said Credit Suisse analyst Thomas Gallagher.
Separately, TheStreet Ratings team rates PRUDENTIAL FINANCIAL INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PRUDENTIAL FINANCIAL INC (PRU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 20.5%. Since the same quarter one year prior, revenues rose by 30.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 312.1% when compared to the same quarter one year prior, rising from -$514.00 million to $1,090.00 million.
- Net operating cash flow has significantly increased by 62.61% to $3,576.00 million when compared to the same quarter last year. In addition, PRUDENTIAL FINANCIAL INC has also vastly surpassed the industry average cash flow growth rate of -31.32%.
- PRUDENTIAL FINANCIAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PRUDENTIAL FINANCIAL INC swung to a loss, reporting -$1.57 versus $0.92 in the prior year. This year, the market expects an improvement in earnings ($9.70 versus -$1.57).
- PRU's debt-to-equity ratio of 0.99 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
- You can view the full analysis from the report here: PRU Ratings Report