Pinnacle Financial Partners, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Russell Gunther from Stephens downgraded the rating on the stock to a Hold and gave it a $133.00 price target.
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Russell Gunther has given his Hold rating due to a combination of factors surrounding Pinnacle Financial Partners’ strategic decisions and market conditions. The company’s recent move to acquire SNV through an all-stock deal introduces a level of uncertainty, particularly concerning the integration of SNV into Pinnacle’s existing operations and culture. Gunther notes that while management anticipates significant earnings per share growth by 2027, the anticipated tangible book value dilution and execution risks associated with this merger contribute to a cautious outlook.
Additionally, the market has already reacted negatively to the news of the acquisition, with Pinnacle’s stock experiencing a decline. This market response, coupled with the potential regulatory and capital challenges of forming a larger banking entity, underscores the reasons for maintaining a Hold rating. Gunther emphasizes that while there are potential benefits to the merger, the complexities involved warrant a more conservative stance until further clarity is achieved.
According to TipRanks, Gunther is a 4-star analyst with an average return of 10.2% and a 63.93% success rate. Gunther covers the Financial sector, focusing on stocks such as Seacoast Banking Of Florida, First Bancorp, and Pinnacle Financial Partners.
In another report released yesterday, TR | OpenAI – 4o also downgraded the stock to a Hold with a $117.00 price target.