Piper Sandler upgrades Principal Financial to 'overweight'

Principal Financial

18/12/2024 12:12

** Shares of insurer Principal Financial Group  PFG.O  up
~1% at $78.33 premarket on low volumes
    ** Piper Sandler upgrades stock to "overweight" from
"neutral"
    ** Says co's domestic focus on core small- and medium-sized
business (SMB), with it being largest pool of employment, means
to own PFG is to gain access to that channel
    ** Says re-investment in U.S. economy disproportionately
benefits PFG, while co is well-positioned to execute on fee
opportunity in retirement and income products
    ** Seeks better alignment of asset (Principal Global
Investors) and pension (Principal International) management,
says integration of both could help valuation positively
    ** Says PFG, weighting more towards fee,
underwriting-related earnings, typically will trade above peer
average, except now, which makes stock attractive
    ** One of 14 brokerages rate the stock "strong buy", ten
"hold" and three "sell"; with a median PT of $90
    ** Up to last close, stock had fallen 1.4% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))