Goldman Reiterates Buy On Principal Financial Group (PFG)

Goldman Sachs is reiterating its Buy rating on Principal Financial Group, Inc. PFG after it reported earnings yesterday. In a note to clients, Goldman writes, "The favorable outlook for FSA flows is building as management highlighted a strong start to 4Q sales and confidence in achieving 15%-20% sales growth in 2010. This level of annual growth implies 125%-150% yoy growth in 4Q ($2.3-2.5bn), lending credence to the strong sales pipeline driven by improvement in corporate profitability. We would note 3Q saw outflows improve from 2Q levels ($220mn vs. $330mn) and were likely inline with most investors' expectations." Shares of PFG gained 15 cents yesterday to close at $26.99, a gain of 0.5%.