B of A Securities Rates Principal Financial (PFG) sell

On June 24, 2026, B of A Securities analyst Joshua Shanker lowered the firm's rating on Principal Financial Group, Inc. (PFG) to sell. Along with the downgrade, the firm set a price target of $95.00 for the Des Moines-based financial services company. This shift suggests a cautious view on the stock's future performance relative to its peers in the asset management industry.

Shanker Sees Downside Risk

The new $95.00 price target from B of A Securities is notable because it sits well below where the stock has been trading lately. On Wednesday, shares were priced at $105.44. By setting the target at $95.00, Shanker is suggesting that the stock could lose about $10.44 per share from its current level. This bearish outlook contrasts with some of the more optimistic targets seen earlier in the year, though it aligns with a broader trend of analysts trimming their expectations for the firm.

Mixed Sentiment from Wall Street Analysts

Several other investment banks have weighed in on Principal Financial Group recently, showing a wide range of opinions. On October 15, 2026, JP Morgan maintained a neutral rating while slightly lowering its target to $106.00. Wells Fargo followed suit on October 12, 2026, keeping an equal-weight rating with a $113.00 target. Not all firms are as skeptical as B of A; Piper Sandler maintained an overweight rating on September 28, 2026, with a much higher price target of $128.00. Meanwhile, Barclays remains the most pessimistic, maintaining an underweight rating with an $86.00 target as of October 7, 2026. Currently, the average price target across 12 analysts is $111.83, which results in a consensus recommendation of hold.

Principal Financial Group Stock Performance

Looking at the stock's recent history, it has traded within a 52-week range of $77.90 to $121.18. At the current price of $105.44, it is sitting in the upper half of that yearly range. The company's 50-day moving average—a line that shows the average price over the last 50 trading days to help identify trends—is $113.39. This means the stock has recently dipped below its short-term trend line, even as it stays above its longer-term 200-day moving average of $100.49.

Recent Earnings and Growth

Principal Financial Group reported annual revenue of $15.69 billion, reflecting a growth rate of 6.4%. The company earned $7.03 per share over the last twelve months. Its profitability remains steady, with a return on equity of 12.9%, which measures how well the company uses shareholder money to generate profit. Investors are looking ahead to October 26, 2026, when the company is scheduled to release its next set of quarterly financial results.

PFG Dividend Yield

For those focused on income, the company pays an annual dividend of $3.36 per share. At current prices, that works out to a dividend yield of 2.86%. The company currently uses about 45% of its earnings to cover these dividend payments, a level often seen as sustainable for a mature financial firm.

Retirement and Asset Management Focus

Principal Financial Group is a global provider of retirement services, life insurance, and asset management. It focuses heavily on helping small and medium-sized businesses set up 401(k) plans and other employee benefits. Because its business is so closely tied to the stock and bond markets, its revenue can swing based on how well the broader economy is doing and how much money clients are moving into its investment funds.

What's Ahead for Principal Financial Group, Inc.

The downgrade by B of A Securities to a sell rating is a signal for investors to watch the upcoming October 26 earnings report closely. While the stock has shown resilience over the past year, the gap between the current price and Shanker's $95.00 target suggests that some professional observers see a period of cooling off ahead. As with all analyst ratings, these are opinions based on current data and do not guarantee future stock movement.