Principal Financial price target raised to $86 from $84 at BofA

BofA analyst Joshua Shanker raised the firm’s price target on Principal Financial to $86 from $84 and keeps a Neutral rating on the shares. The company’s Q4 earnings beat was favorably impacted by stronger than expected encaje performance within Principal International, more than offsetting weaker variable investment income, the analyst tells investors in a research note. All of Principal Financial’s business segments beat the firm’s forecasts except for Principal Global Investors due to higher compensation and other expenses, BofA added.