UPDATE: Morgan Stanley Upgrades Principal Financial Group On In-Line Valuation Upside

In a report published Monday, Morgan Stanley analyst Nigel Dally upgraded the rating on

from Underweight to Equal-Weight, but removed the $49.00 price target. In the report, Morgan Stanley noted, “We are upgrading Principal to Equal‐weight from Underweight to reflect dissipating risks associated with emerging market exposures and signs of improved competitive conditions in its pension operations. Further, the stock has underperformed broader markets YTD, despite being one of the more equity sensitive names in the group. On the back of this underperformance, we now see a more balanced risk‐reward opportunity for the stock, with upside in‐line with peers.” Principal Financial Group closed on Friday at $48.88.