Weekly Focus Idea: Principal Financial Group

Research evidence excerpt

Weekly Focus Idea: Principal Financial Group

C O M PA N Y N O T E

J u n e 2 9 , 2 0 2 6

Principal Financial Group, Inc. (PFG) Overweight

CONCLUSION PRICE: US$107.75

We are highlighting Principal Financial Group (PFG) as our weekly focus idea. PFG is TARGET: US$125.00

positioned in group benefits and retirement products serving the small and medium-sized Our $125 PT is based on a multiple of ~12x our

business (SMB) marketplace. In our opinion, positioning them as a capital light relative safe forward (2027E) earnings estimate of $10.25.

haven, benefiting from the extension of the domestic economic cycle.

Paul Newsome, CFA, CPCU

Managing Director, Piper Sandler & Co.

• We remain Overweight on PFG: PFG's market position serves the SMB marketplace 312 281-3445, paul.newsome@psc.com

and has positioned the company to benefit from a persistent tailwind from the extension Cam Bianchi

of the domestic economic cycle. We think the fee-based earnings growth through Research Analyst, Piper Sandler & Co.

Principal Asset Management (PAM) and Retirement & Income Solutions (RIS) provides 612 456-9841, cam.bianchi@psc.com

a durable earnings engine, while performance fee normalization remains near term Eleanor Nentl

sources of volatility. We believe large companies will continue to leverage AI to get Research Analyst, Piper Sandler & Co.

smaller, pushing more businesses into the SMB category, raising competition. PFG 612 398-1846, eleanor.nentl@psc.com

positioning in this segment should provide insulation and future growth prospects. In our Changes Previous Current

opinion, PFG should have better performing variable investment income in the second Rating — Overweight

quarter, with the expectation for real estate monetization performance to pick up after the Price Tgt — US$125.00