PNC Financial, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Betsy Graseck from Morgan Stanley maintained a Sell rating on the stock and has a $186.00 price target.
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Betsy Graseck’s rating is based on several factors that influence the financial outlook for PNC Financial. Despite an increase in the 2025 and 2026 earnings per share (EPS) estimates due to higher fee income and net interest income (NII), these positive aspects are partially offset by rising expenses and provisions. The price target for PNC has been raised slightly, reflecting a modest revision higher in the valuation, yet it still remains underweight compared to peers due to a premium in price-to-earnings (P/E) multiple.
Betsy Graseck notes that while PNC shows strong loan growth in commercial and industrial sectors and is a compelling NII growth story, there are concerns about the sustainability of this momentum. The credit performance, particularly in commercial real estate office loans, remains a point of caution despite current low net charge-offs. Additionally, the capital position, while stable, might not support significant buybacks unless loan growth decelerates. These factors combined lead to a cautious outlook, resulting in a Sell rating.
Graseck covers the Financial sector, focusing on stocks such as Citigroup, JPMorgan Chase, and State Street. According to TipRanks, Graseck has an average return of 4.2% and a 50.30% success rate on recommended stocks.