- Piper Sandler analyst John Barnidge downgrades Principal Financial Group (PFG -0.5%) stock to Neutral from Overweight on lack of catalysts to continue fueling its relative outperformance.
- Expects that PFG management will focus on long-term profitability improvement targets at its upcoming investor day and doesn't expect any major changes to continue its outperformance.
- The analyst also doesn't see anything "revolutionary" coming out of its strategic review. "With PFG's stock price now >20% higher, the risk/reward of buybacks vs. maintaining the valuable multi-life cycle product portfolio distribution is meaningfully reduced, so we expect something more modest such as a life insurance redundant reserve financing," Barnidge writes in a note to clients.
- Recall that PFG started the review in February in response to prodding by Paul Singer's hedge fund.
- In the past year, PFG's total return of +60% outpaced the S&P 500's 42% as seen in chart below.
- See why SA contributor Wolf Report in April called PFG a weak "Buy" or a "Hold."
Principal Financial downgraded to Neutral at Piper on absence of catalysts
Recommended For You
About PFG Stock
Related Stocks
Symbol | Last Price | % Chg |
---|---|---|
PFG | - | - |
Principal Financial Group, Inc. |