Are Wall Street Analysts Bullish on Principal Financial Group Stock?

Valued at a market cap of $18 billion, Principal Financial Group, Inc. (PFG) is a financial investment management and insurance company based in Des Moines, Iowa. It provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients. 

This asset management company has lagged behind the broader market over the past 52 weeks. Shares of PFG have declined 4.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.3%. Moreover, on a YTD basis, the stock is up 6.2%, compared to SPX’s 12.5% uptick.

Narrowing the focus, PFG has also underperformed the Financial Select Sector SPDR Fund’s (XLF) 2.7% rise over the past 52 weeks and 6.3% YTD return. 

PFG released weaker-than-expected Q3 earnings results on Oct. 27. The company’s adjusted EPS of $2.10 increased 19.3% from the year-ago quarter, but missed the consensus estimates of $2.18. However, despite the earnings miss, its shares surged 3.3% in the following trading session. Investor sentiment may have been lifted by a 5.9% annual increase in Assets Under Management (AUM) to $784.3 billion and the company’s decision to raise its fourth-quarter 2025 common stock dividend to $0.79 per share.

For the current fiscal year, ending in December, analysts expect PFG’s EPS to grow 18.8% year over year to $8.28. The company’s earnings surprise history is disappointing. It missed the consensus estimates in three of the last four quarters, while surpassing on another occasion. 

Among the 15 analysts covering the stock, the consensus rating is a "Hold,” which is based on four “Strong Buy,” nine "Hold,” and two “Strong Sell” ratings.

The configuration has remained fairly stable over the past three months. 

On Nov. 17, Morgan Stanley (MS) maintained an "Underweight" rating on PFG and raised its price target to $87, indicating a 5.9% potential upside from the current levels. 

The mean price target of $88.85 represents an 8.1% premium from PFG’s current price levels, while the Street-high price target of $103 suggests a 25.3% potential upside from the current levels.