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On Tuesday, Evercore ISI adjusted its financial projections for PNC Financial (NYSE:PNC), reducing the price target from $205.00 to $180.00 while reaffirming an Outperform rating on the stock. The revision reflects a cautious stance on credit forecasting, particularly due to expected specific challenges in the office commercial real estate sector in the second quarter. Despite this, analysts at Evercore ISI remain optimistic about PNC’s growth prospects, solid financial returns, and lower risk profile. Currently trading at $155.39, PNC shows slight undervaluation according to InvestingPro models, with analyst targets ranging from $179 to $257.
The firm’s analysts have slightly decreased their earnings per share (EPS) estimates for PNC for the years 2025 and 2026. The new estimates are approximately 2.5% lower for 2025 at $15.19, down from $15.60, and roughly 0.5% lower for 2026 at $17.70, down from $17.75. This conservative revision in EPS forecasts is primarily due to a more prudent view of credit outcomes in the near term. InvestingPro data reveals that 10 analysts have recently revised their earnings downward, though the bank maintains strong profitability with a P/E ratio of 11.38x and trailing twelve-month EPS of $13.77.
Evercore ISI’s revised outlook also takes into account the broader economic uncertainty post-tariff, which has not affected their pre-provision net revenue (PPNR) forecast after PNC’s solid first-quarter earnings surpassed expectations. Additionally, the analysts have included an increase in the expected share repurchase program to $1.1 billion from the previous $800 million, as management anticipates an acceleration in capital returns to shareholders.
The minor adjustment for the 2026 EPS outlook is based on similar caution regarding macroeconomic uncertainty. It includes expectations for slightly lower net interest income (NII) due to a smaller average loan volume, reduced momentum in capital markets, and a slightly higher trajectory for net charge-offs (NCO) and loan loss provisions (LLP) than previously forecasted.
Despite these revisions, Evercore ISI’s stance on PNC remains constructive, citing the bank’s potential to achieve record net interest income in 2025. This confidence is supported by strong end-of-period loan trends in the first quarter and beneficial interest rate positioning, as recent swap actions have secured higher rate benefits. PNC is also expected to maintain positive operating leverage in the coming years, manage credit effectively, scale up capital returns, and improve overall returns. The bank’s commitment to shareholder returns is evident in its 55-year streak of dividend payments and 14 consecutive years of dividend increases, currently yielding 4.12%. InvestingPro subscribers can access detailed analysis of PNC’s financial health metrics and discover 8 additional exclusive ProTips about this prominent banking institution. As a result, while the price target has been adjusted, the Outperform rating stands, reflecting the firm’s confidence in PNC’s fundamental strengths in a volatile market environment.
In other recent news, PNC Financial Services Group Inc. reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $3.51, surpassing analyst expectations of $3.39. Despite a slight revenue miss, with total revenue at $5.5 billion, the company maintained a robust net interest margin of 2.78%. PNC’s net income for the quarter reached $1.5 billion, and the financial institution returned $800 million to shareholders through dividends and share repurchases. The company reiterated its full-year outlook for 2025, expecting stable average loans and modest revenue growth.
Raymond (NSE:RYMD) James maintained its Market Perform rating for PNC Financial, noting the company’s strong performance in core earnings per share and pre-provision net revenue, which exceeded both Raymond James’ and the consensus forecasts. However, the firm adjusted its EPS estimates due to increased loan loss provisions, reflecting industry-wide credit uncertainty and PNC’s own expectations of approximately $300 million in net charge-offs for the second quarter of 2025. Despite these adjustments, PNC is viewed as a stable investment, with shares trading at lower premiums compared to peers.
PNC Financial continues to focus on technology investments and national market expansion to drive organic growth, highlighting a strong balance sheet and diversified business mix. The company anticipates net interest income growth of 6-7% and a total revenue increase of approximately 6% for the full year. Analysts and executives have noted the potential impact of tariffs and market volatility on client activities, which PNC is monitoring closely.
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