Evolution, not revolution (and none the worse for it) CEO Anil Wadhwani has now laid out his strategic plan for the Group, including financial targets through to 2027. The focus will be on customer experience, technology-powered distribution, and transforming the Health business model - all important priorities, in our view, that mark a continuation in the focus on Pru''s new business production advantages. New financial targets marginally positive The New Business Profit and free surplus generation targets are ahead of our previous forecasts, which we take to be a positive, albeit the group will need to spend an additional USD1bn to build the capabilities necessary to achieve these targets. The focus is on the organic opportunity - but on top of this we see c.USD4bn of excess capital and c.USD5bn of debt headroom available for inorganic opportunities. HK reopening proceeds well; exposure to negative trends in China seems limited Pru''s equity debate is currently focused on Greater China: both the benefit to be derived from the reopening of the MCV market in HK, and the exposure to negative Chinese macro trends (e.g. in Real Estate). The latest data suggests the group is seeing a significant benefit from the reopening of MCV business. And we see the exposure to the downturn in the Chinese macro as manageable, with limited real estate on the balance sheet. Upgrading to Neutral after 25% underperformance Pru''s shares have underperformed the SXIP by c.25% since we downgraded to Underperform in January. In light of this performance, combined with the relatively positive implications of the new plan for valuation, we now upgrade the shares to Neutral.