UPDATE: Citigroup Initiates Principal Financial Group at Neutral on Macro Headwinds

Citigroup initiated coverage on Principal Financial Group Inc

with a Neutral rating and a $30.00 price target. Citigroup noted, "In our view, PFG has an attractive business mix given its leadership position in the U.S. 401(k) market and growing international and asset management segments. Over time, this should enable it to generate an above-average ROE and superior cash flow. However, PFG faces near-term margin headwinds in its U.S. business, and we believe it needs to deliver improved results to drive a higher valuation." Principal Financial Group closed at $29.20 on Wednesday.