UBS analyst Michael Ward CFA maintained a Hold rating on Principal Financial today and set a price target of $88.00.
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Michael Ward CFA has given his Hold rating due to a combination of factors influencing Principal Financial’s performance. The company’s core earnings per share (EPS) exceeded expectations, driven by strong results in Specialty Benefits, Investment Management, and Retirement and Income Solutions (RIS). However, the headline operating EPS fell short of consensus estimates, primarily due to the annual assumption review.
While there were notable improvements in group life and disability sectors, the supplemental health segment experienced some year-over-year deterioration. The company’s solid buyback activity and robust capital health are positive indicators, yet concerns about credit market conditions persist. These mixed signals contribute to the Hold rating, as the potential for growth is balanced by existing market uncertainties.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $81.00 price target.