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Raymond James upgraded Principal Financial (NASDAQ:PFG) to Strong Buy from Market Perform as it sees opportunities for revenue and cash flow generation to accelerate.
“Revenue growth could accelerate from solid 4-6% annual gains today, as PFG becomes a one-stop shop for business solutions with emphasis on the attractive small-to-mid size employer market,” the analysts said.
The analysts added, PFG has been deploying capital above its guided range and its Bermuda entity is an engine for continued capital release.
Raymond James also updated its FY 24, 25 and 26 operating EPS estimates to $7.40, $8.62 and $9.57, respectively.
SA quants rate the company at Hold.
The upgrade comes a week after J.P. Morgan upgraded the company from Underweight to Neutral on a favorable macro backdrop.