Principal Financial price target raised to $36 from $35 at Barclays

Barclays raised the firm’s price target on Principal Financial to $36 from $35 and keeps an Underweight rating on the shares as part of a Q3 earnings preview for the North America insurance group. The setup looks solid for both life and property and casualty insurance, the analyst tells investors in a research note. In life, the firm sees “offsetting currents” from favorable equity markets versus declines in interest rates. Barclays expects catastrophes to be moderately above average due to a number of events including three named significant named storms in the U.S. For the P&C insurers, it says underlying margins should remain at strong levels and that pricing updates will be viewed more favorably, even in property where there has been some concern around decelerating pricing.