Principal Financial price target raised to $81 from $75 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Principal Financial to $81 from $75 and keeps an Equal Weight rating on the shares. Although earnings were mixed from the life insurance group, with solid results from interest rate sensitive products offsetting the weaker than expected equity sensitive products, companies such as MetLife (MET), Voya (VOYA) and others all saw weaker than expected VII segment performance serving as a headwind to earnings and to forward earnings guidance, the analyst tells investors. Though most life insurers did not lower VII guidance, the firm expects the earnings volatility from this segment to continue, the analyst added.