MARKET TALK: Nomura Reinitiates Pru At Neutral; Lifts Target

0929 GMT [Dow Jones] Nomura reinitiates coverage of Prudential (PRU.LN) at neutral and raises the price target to 700p from 680p. Continues to view its Asian franchise as highly attractive but thinks the market already recognizes this. In contrast, thinks Legal & General (LGEN.LN) and Aviva (AV.LN) are undervalued and have a higher likelihood of providing positive earnings surprises than Prudential. As a consequence, they remain Nomura's top picks and are both rated at buy. Sees more medium-term risks to Prudential's IFRS earnings growth than with L&G and Aviva, and expects a slowdown in Prudential's sales following its very strong growth in 2H '09. Pru shares +1.1% at 566p. (andrea.tryphonides@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 16, 2010 05:29 ET (09:29 GMT)