UPDATE: Keefe, Bruyette & Woods Upgrades Principal Financial Group to Outperform, Raises PT on Increased Confidence

In a report published Friday, Keefe, Bruyette & Woods analyst Jeffrey Schuman upgraded the rating on

from Market Perform to Outperform, and raised the price target from $54.00 to $56.00. In the report, Keefe, Bruyette & Woods noted, “We are upgrading PFG to Outperform from Market Perform. After conducting a deeper dive, we are now more confident in discounting the upside from future ROE improvement and more comfortable assuming the downside from emerging markets risk. In light of these conclusions, we advise investors to buy the stock on the recent weakness. We are increasing estimates and raising our price target to $56 from $54, which implies 29% total return, including dividends.” Principal Financial Group closed on Thursday at $44.40.