UBS Maintains a 'Neutral' on Principal Financial Group (PFG); Lowers Estimates & Price Target

UBS maintains a 'Neutral' on Principal Financial Group (NYSE: PFG) price target lowered from $33 to $24.

UBS analyst says, "PFG significantly exposed to a potential economic downturn - As discussed in our Aug 12th sector note (“More Defensively Positioned This Time”), relative to peers, PFG has high sensitivity to deterioration in the economy—50%+ of 2012E op EPS from segments (e.g., FSA, Principal Funds, Specialty Benefits, PGI) sensitive to GDP and/or S&P500 changes. In addition, PFG has a relatively high-risk investment portfolio, with above-peer-average CMBS, commercial mortgage loan, and peripheral Eurozone corporate exposures."

"Reducing ests, largely on recent equity market and interest rate pressures (FY11 EPS estimate from $3.01 to $2.95 and FY12 from $3.46 to $3.30)

For more ratings news on Principal Financial Group click here and for the rating history of Principal Financial Group click here.

Shares of Principal Financial Group closed at $22.32 yesterday.

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