In a report released yesterday, Ebrahim Poonawala from Bank of America Securities reiterated a Buy rating on PNC Financial (PNC – Research Report), with a price target of $196.00.
Ebrahim Poonawala’s rating is based on PNC Financial’s strong positioning as a high-quality, defensive stock within the super-regional bank sector. Despite the stock’s recent underperformance, PNC has demonstrated robust management execution under CEO Bill Demchak, which has helped it navigate the challenging macroeconomic environment effectively. The bank’s ability to maintain a stable strategy, even with the recent hiring of Mark Wiedman, suggests a commitment to its current strategic priorities, such as cross-selling asset and wealth management services to banking clients.
Additionally, the financial outlook for PNC remains positive, with an upward revision in the FY25 earnings per share forecast due to lower credit costs and an expected increase in share buybacks. The stock is considered attractively valued, trading at a reasonable price-to-earnings ratio compared to its expected earnings growth over the next few years. These factors contribute to a favorable risk/reward profile, supporting the Buy rating with a price objective of $196.00 USD.
According to TipRanks, Poonawala is a 5-star analyst with an average return of 7.1% and a 52.74% success rate. Poonawala covers the Financial sector, focusing on stocks such as Goldman Sachs Group, JPMorgan Chase, and Morgan Stanley.
In another report released today, Barclays also maintained a Buy rating on the stock with a $235.00 price target.