Piper Sandler Reiterates Neutral Rating on Principal Financial Group (PFG)

Piper Sandler analyst John Barnidge reiterated a Neutral rating and $85.00 price target on Principal Financial Group (NASDAQ: PFG).

The analyst commented, "On 5/16/24, PFG announced it was acquiring the employee stock ownership plan (ESOP) business of Ascensus. At closing, PFG will add ~800 plans and >165,000 participants to its workplace savings and retirement solutions business that ranks as the #1 ESOP service provider in the U.S. While terms of the transaction were not disclosed and transaction is expected to close in 2Q24, so rather quickly, it does suggest to us: 1) continued consolidation in lifecoland is persisting following Nippon Life earlier today acquiring ~20% stake in CRBG, 2) PFG’s allocation towards M&A within capital deployment is 0% - 10% with it now >0% and 3) with PFG’s focus on small-end of pension risk transfer (PRT), we believe this incrementally serves to improve overall total addressable market for that product with ~20% of its transaction being focused on internal clients with roughly average AUM size of $40 million."

For an analyst ratings summary and ratings history on Principal Financial Group click here. For more ratings news on Principal Financial Group click here.

Shares of Principal Financial Group closed at $84.28 yesterday.

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