Prudential: Q2's Solid Underwriting Validates The Recent Rally (Downgrade)

Prudential Financial has outperformed, but with shares above my $115 target, I am moving to a 'Hold' rating. PRU's Q2 results were strong: EPS beat by $0.56, net investment income rose 10%, and actuarial assumption updates were favorable. PGIM delivered robust margins and earnings, but persistent passive competition and muted net flows temper long-term optimism.