Principal Financial hit a new 52-week high this week. Is there further upside room in the stock? Steven Schwartz, insurance analyst at Raymond James, shared his outlook.
“There’s some wiggle room to the upside, particularly as the equity markets rise, so we’d be buyers [rather] than sellers,” Schwartz told CNBC.
Schwartz has an “outperform” rating on the firm and a $35 price target.
“The retirement space in the U.S. is very important, and Principal is the premier player in the small to mid-size employee retirement market, which remains a growth area,” he explained. “We’re beginning to see a turn and recurring deposits go up, and seeing new sales increase.”
“Principal is also a major player in emerging markets overseas and a major player in asset management,” he added.
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Schwartz does not own shares of PFG.
PFG provides retirement plan services [401(k), ESOP and profit-sharing plans] to Raymond James & Associates and its employees.