Principal Financial Group stock price target raised to $87 by UBS

Published 29/07/2025, 16:36
Principal Financial Group stock price target raised to $87 by UBS

Investing.com - UBS raised its price target on Principal Financial Group (NASDAQ:PFG) to $87.00 from $85.00 on Tuesday, while maintaining a Neutral rating on the financial services company. According to InvestingPro data, the company currently trades at a P/E ratio of 17x and shows GOOD overall financial health, with analyst targets ranging from $73 to $101.

The price target increase follows what UBS described as a "core beat" in Principal Financial’s recent earnings report. UBS highlighted improved underwriting metrics, noting that the group life loss ratio was better year-over-year at 50% compared to 53% last year. The company has maintained consistent dividend payments for 24 consecutive years, with a current yield of 3.78%.

UBS indicated this performance could have implications for Lincoln National (NYSE:LNC), MetLife (NYSE:MET), Reinsurance Group (NYSE:RGA) of America, and Voya Financial (NYSE:VOYA). The firm also noted a slight shortfall in Retirement and Income Solutions (RIS) and Investment Management flows, which was offset by better investment performance.

Among the one-time factors affecting Principal Financial’s results, UBS mentioned a payroll calendar shift from biweekly to semi-monthly. This was part of the factors considered in the analyst’s evaluation.

Based on the improved underwriting and expense results, UBS raised its 2026 earnings per share estimate for Principal Financial by approximately 5%, from $8.82 to $9.24. For deeper insights into PFG’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, check out the full research report on InvestingPro.

In other recent news, Principal Financial Group reported its assets under management totaling $752.7 billion as of June 30, 2025. Of this, $579.6 billion is managed by Principal Asset Management – Investment Management, and $143.4 billion is handled by Principal Asset Management – International Pension. In addition, the company announced the outcomes of its annual shareholders meeting, where all four Class III director nominees were elected to serve a three-year term. The elected directors are H. Elizabeth Mitchell, Blair C. Pickerell, Clare S. Richer, and Deanna D. Strable-Soethout. Furthermore, Principal Financial Group appointed Joel Pitz as the new executive vice president and chief financial officer. Pitz, who has been with the company for 30 years, previously served as senior vice president and controller and was the interim CFO since August 2024. His extensive background includes roles as CFO for international businesses and chief accounting officer. These developments mark significant updates for the company.

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