Principal Financial (PFG) Stock Outlook Adjusted by JPMorgan Amid Life Insurance Peer Comparison

Principal Financial Group (NASDAQ:PFG) ranks among the biggest publicly traded asset managers. JPMorgan dropped Principal Financial Group (NASDAQ:PFG) from Overweight to Neutral on January 5, with a $103 price target. The firm clarified that the adjustment represents “better perceived value in other life insurance stocks” instead of an actual change in Principal Financial Group’s outlook.

Principal Financial Group, Inc. (NASDAQ:PFG), according to JPMorgan, boasts “a superior business mix, with lower tail risk, a higher ROE, and better free cash flow than most life insurance peers” when compared to rivals in the market.

The firm notes that Principal Financial Group’s valuation “seems attractive” though “is no longer overly enticing on a relative basis following its outperformance in 2025.” It also contends that stronger asset management flows could work as a “near-term catalyst” for the stock’s performance.

Principal Financial Group, Inc. (NASDAQ:PFG) provides financial products and services to businesses, individuals, and institutional clients. The company offers retirement solutions, life and health insurance, wellness programs, and investment and banking products.

While we acknowledge the potential of PFG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.