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Principal Financial initiated with a Market Perform at BMO Capital

Principal Financial initiated with a Market Perform at BMO Capital

BMO Capital analyst Jack Matten initiated coverage of Principal Financial (PFG) with a Market Perform rating and $93 price target The company has executed on a business mix transformation and has a solid cash flow profile, but it faces some secular challenges including declining fee rates in its retirement and asset management markets, the analyst tells investors in a research note. BMO also believes Principal is subject to macro sensitivities, including elevated equity market sensitivity and currency impacts to earnings within its international pension operations.

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