UPDATE: UBS Starts Principal Financial Group (PFG) at Neutral; Increased Pressure from Lack of Margin Expansion

(Updated - July 18, 2012 11:39 AM EDT)

UBS initiates coverage on Principal Financial Group (NYSE: PFG) with a Neutral. PT $26.00.

Analyst, Suneet Kamath, said, "PFG trades at ~0.95x book value (ex-aoci), a premium to the life group, despite an in-line ROE. While often viewed as an asset gathering play deserving a premium multiple, PFG continues to produce an insurance-like ROE. Between 2007 and 2011, PFG saw its ROE contract by over 6.00 bps—more than peers—to ~10%...Expect margin and net flows challenges in flagship FSA business...Higher growth in PGI and Int’l not enough to overcome FSA pressures."



For an analyst ratings summary and ratings history on Principal Financial Group click here. For more ratings news on Principal Financial Group click here.

Shares of Principal Financial Group closed at $26.15 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Financial Uncertainty Pushes Workers to Delay Retirement, Principal® Research Finds
• JPMorgan Resumes SanDisk (SNDK) at Overweight
• Leerink Starts Ligand Pharma (LGND) at Outperform