Piper upgrades ‘contrarian idea’ Principal Financial to Overweight

Piper Sandler upgraded Principal Financial (PFG) to Overweight from Neutral with an unchanged price target of $90. The firm call the upgrade a “contrarian idea.” The company’s core small- and medium-sized business focus domestically represents the largest pool of employment, and to own Principal Financial is to gain access to that channel, the analyst tells investors in a research note. Piper says a reinvestment in the American economy disproportionately benefits the company and as such, it is well positioned to execute on the fee opportunity in retirement and income products from harvesting its core customer focus for pension risk transfer. The shares are attractively valued at current levels, adds, the firm.