JPMorgan Upgrades Principal Financial Group (PFG) to Neutral

JPMorgan analyst Jimmy Bhullar upgraded Principal Financial Group (NASDAQ: PFG) from Underweight to Neutral with a price target of $96.00 (from $88.00).

The analyst comments: "We are upgrading PFG from Underweight to Neutral due to the favorable macro backdrop, an expected improvement in PGI results, and the stock’s underperformance. In our opinion, PFG has a superior business mix that carries less tail risk and will generate a higher ROE and better free cash flow than other life insurers. Still, we have been Underweight on PFG since late 2022 due to concerns about secular headwinds facing the DC market, poor trends in the PGI (asset management) business, and the stock’s relative valuation. Since then, PFG shares are roughly flat, while the life sector is up close to 30%. Although our long-term outlook for margins and flows in the DC market is unchanged, trends in the asset management business are improving, marked by an expected recovery in net flows in both fixed income and equity funds."

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 $78.01 yesterday.

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