Buy Prudential And Go Drink Lemonade

Summary

  • Investors following our advice to go long PRU and short LMND have made 90% return since our first article compared to -2% total return for S&P 500.
  • Prudential is expected to deliver $53bn in revenues, $11.52 in EPS this year, and pay $4.80 dividend. The company is valued at $36bn, with book value at $119/share.
  • According to DDM, our fair value per PRU share is estimated at least at $111, implying 15% upside potential to the current share price.
  • Lemonade is expected to generate $205m in revenues in 2022, lose $5.5 per share, and is currently valued at $1.1bn. The losses are expected to continue in the following years.
  • Looking for a helping hand in the market? Members of The Dividend Kings get exclusive ideas and guidance to navigate any climate. Learn More »

Orange

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Those of you who followed our advice from March 2021 article: Lemonade Makes A Sour Offering For Investors, Go With Prudential Instead would have made over 90%, most of it coming from Lemonade (

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This article was written by

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Individual investor, equity analyst, stock expert and panel speaker. Following stock markets for over 15 years and interested in special situations, distressed equity with some highly successful investments and a few less so:) As a CFA charterholder, I adhere to high ethical standards and quality of research. 

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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