** Shares of insurer Principal Financial Group up ~1% at $78.33 premarket on low volumes

** Piper Sandler upgrades stock to "overweight" from "neutral"

** Says co's domestic focus on core small- and medium-sized business $(SMB)$, with it being largest pool of employment, means to own PFG is to gain access to that channel

** Says re-investment in U.S. economy disproportionately benefits PFG, while co is well-positioned to execute on fee opportunity in retirement and income products

** Seeks better alignment of asset (Principal Global Investors) and pension (Principal International) management, says integration of both could help valuation positively

** Says PFG, weighting more towards fee, underwriting-related earnings, typically will trade above peer average, except now, which makes stock attractive

** One of 14 brokerages rate the stock "strong buy", ten "hold" and three "sell"; with a median PT of $90

** Up to last close, stock had fallen 1.4% YTD

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))