Pinnacle–Synovus Merger-of-Equals: Strategic Growth, Proven Recruitment Model, and Valuation Upside Support Buy Rating

Gary Tenner, an analyst from D.A. Davidson, has initiated a new Buy rating on Pinnacle Financial Partners (PNFP).

Gary Tenner has given his Buy rating due to a combination of factors that highlight both the strategic and financial merits of Pinnacle Financial Partners’ merger-of-equals with Synovus. He believes the combined bank’s expanded footprint across dynamic Southeastern markets, coupled with only modest geographic overlap, should support above-peer profitability and growth over time. His valuation work, which applies premium but still reasonable multiples to 2026 tangible book value and earnings, implies upside from current trading levels, reflecting confidence that returns and earnings growth can outperform similar-sized regional banks. While he acknowledges that bank MOEs have a mixed track record and that investor sentiment is cautious, he views the leadership team as aligned and fully committed to executing the integration successfully.

Tenner also emphasizes the importance of Pinnacle’s proven, recruitment-driven growth model, which focuses on hiring experienced bankers with established client relationships to drive superior organic expansion. The planned ramp-up in revenue-producing hires through 2027, including meaningful contribution from the legacy Synovus markets, underpins his expectations for solid loan and deposit growth. His earnings projections for 2025–2027 are generally in line with or slightly ahead of current consensus, suggesting that the market may be underappreciating the long-term earnings power of the combined franchise. Taken together, the strategic rationale, growth trajectory, and valuation support his Buy recommendation despite near-term integration and execution risks.

In another report released yesterday, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $105.00 price target.