Principal Financial downgraded by BofA, shares under fresh pressure

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-25, 15:36.

Principal Financial Group (US74251V1026) sits in the analyst spotlight after Bank of America cut its rating to Underperform and reduced its price target to 95 dollars from 98 dollars, as reported on June 24. The NYSE-listed S&P 500 constituent becomes one of the more cautiously viewed US life and retirement players compared with peers like Prudential Financial and MetLife.

What BofA now expects

Bank of America’s equity research team cites slower growth prospects following a strong valuation run as the key reason for the downgrade to Underperform, according to a June 24 note summarized by MarketScreener. The new 95 dollar target implies modest downside from the recent share price, signaling limited total-return potential versus other financials.

The report indicates that earlier multiple expansion in Principal Financial’s stock has outpaced the bank’s assessment of medium-term earnings growth. In that context, BofA argues that investors face a less attractive risk-reward profile, particularly if margins or fee income in asset management and retirement solutions normalize.

How the analyst consensus looks

Beyond Bank of America, Principal Financial carries a mixed recommendation profile, with several brokers still rating the stock Hold and a minority on Buy, as shown by consensus data on MarketScreener. Average 12-month price targets cluster close to the mid-90 dollar range, pointing to a muted upside from the latest close.

Versus sector peers such as Prudential Financial and MetLife, Principal Financial trades at valuation metrics that reflect its strong capital position and fee-based businesses but offer less obvious discount relative to the US life and retirement group, according to recent market commentary.

The business behind the stock

Principal Financial’s core business consists of retirement solutions, asset management and insurance, with Principal Global Investors and retirement services forming key fee-generating pillars. The group offers 401(k) plans, annuities and mutual funds to employers and individuals, focusing on long-term savings and investment products.

Where the stock trades today

Principal Financial shares (US74251V1026) trade on the NYSE, with the latest available price information indicating levels in the mid-90 dollar range as of the most recent session. The stock remains part of the S&P 500 financials cohort, anchoring it in major US benchmark indices.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation or a solicitation to buy or sell any security. All data are based on sources believed to be reliable but cannot be guaranteed; investors should conduct their own research or consult a qualified advisor before making investment decisions.