Prudential Financial (PRU) Stock Forecast & Price Target

Prudential Financial is benefitting from a diverse revenue stream, as evidenced by a notable increase in other related revenues, which rose to approximately $50 million, reflecting improvements in incentive fees and transaction fees since the beginning of 2025. Although variable investment income is projected to be $55 - $75 million, which is under the planned expectations, it has shown improvement from a decrease of around $90 million earlier in 2025. The overall financial performance underscores Prudential's strong market presence, particularly in the U.S. and Japan, alongside the contributions from its investment management business, PGIM, which manages approximately $1.4 trillion in assets.

Prudential Financial has pre-announced several metrics for the second quarter of 2025 that suggest a decline in earnings power, which is viewed as a negative incremental change in comparison to peers. The company’s investment management subsidiary, PGIM, reported assets under management of $1.44 trillion, which is slightly above expectations but remains flat compared to the previous quarter, raising concerns about growth potential. Additionally, the overall overshadowing sentiment from these pre-announcements aligns more closely with weaknesses seen in peers like MetLife, further contributing to a negative outlook on Prudential's stock performance.