Cautious Outlook on PNC Financial: Sell Rating Amid EPS Adjustments and Macroeconomic Risks

Betsy Graseck, an analyst from Morgan Stanley, maintained the Sell rating on PNC Financial (PNC – Research Report). The associated price target was lowered to $178.00.

Betsy Graseck’s rating is based on a combination of factors that suggest caution regarding PNC Financial’s future performance. The decision to lower the 2025 and 2026 EPS estimates, albeit marginally, reflects concerns over a higher tax rate, increased share count, and reduced pre-provision operating profit driven by net interest income. These adjustments are only partially offset by lower provisions and preferred dividends, indicating potential challenges in maintaining profitability.
Additionally, the price target was slightly reduced, applying an 11x price-to-earnings multiple to the 2026 EPS, which aligns with previous multiples. While there is some positive momentum in commercial and industrial growth, and management actions to secure net interest income are noted, macroeconomic uncertainties and potential impacts from tariffs and consumer trends present risks. These elements collectively underpin the Sell rating, as they may hinder PNC’s ability to achieve significant upside in the near term.

In another report released today, KBW also maintained a Sell rating on the stock with a $185.00 price target.

Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is neutral on the stock.