Morgan Stanley Upgrades Principal Financial Group (PFG) to Equalweight

Morgan Stanley analyst Bob Huang upgraded Principal Financial Group (NASDAQ: PFG) from Underweight to Equalweight with a price target of $75.00.

The analyst commented: "In November 2022, we downgraded Principal based on concerns about valuation and the company's capital position after aggressively stepping up its buyback pace. In the last 12 months, Principal shares have traded down ~15% (vs. MSLII performance of +5%) as lack of earnings consistency and pressured flows dampened sentiment on the stock. However, on the back of this underperformance, the stock is trading at a more reasonable valuation, in line with its historical average P/E, so our concerns about valuation have largely subsided. Moreover, we view Principal's newly released earnings guidance as a positive development and its current capital position as an improvement relative to its capital position at the time of the downgrade. With these considerations in mind, we are upgrading Principal stock to Equal-weight."

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 $78.69 yesterday.

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