Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Raymond (NSE:RYMD) James upgraded PNC Financial (NYSE:PNC) from Market Perform to Outperform and established a price target of $220.00. The banking giant, with a market capitalization of $77.6 billion, currently trades at an attractive P/E ratio of 13.8x, according to InvestingPro data.
The upgrade reflects PNC’s ongoing net interest income momentum, with Raymond James projecting record NII in both 2025 and 2026 due to ongoing fixed-asset repricing.
Raymond James also cited expansion in fees despite some expected softness in the second quarter of 2025, driven by rising equity markets benefiting asset management and brokerage revenue, along with momentum in capital markets revenues expected in the second half of 2025.
The firm noted PNC’s ongoing capital deployment, including recently-disclosed capital actions following stress tests that were generally better than expected, with a dividend increase ahead of consensus and guidance for similar repurchases in the third quarter of 2025 as expected in the second quarter ($300-400 million).
Raymond James also highlighted the potential for accelerating loan growth if utilization rates move closer to historical averages, as well as PNC’s increasingly attractive relative valuation given its year-to-date underperformance compared to peers and the BKX index.
In other recent news, PNC Financial Services Group announced a 6% increase in its quarterly dividend, raising it to $1.70 per share. This decision follows the company’s successful performance in the Federal Reserve’s 2025 stress test, maintaining a solid Common Equity Tier 1 ratio of 10.6%. Wolfe Research downgraded PNC Financial’s stock rating from Outperform to Peerperform, citing valuation concerns, despite acknowledging the bank’s strong commercial lending operations. PNC also launched a new mobile payment solution, PNC Mobile Accept, aimed at assisting small businesses with processing card transactions through its mobile app. Additionally, the company announced that its Chief Operating Officer, E William Parsley III, will step down, transitioning to an Executive Advisor role. During its recent shareholder meeting, PNC Financial saw the election of 13 director nominees and ratified the appointment of PricewaterhouseCoopers as its independent auditor. The shareholders expressed strong support for the board and executive compensation, with over 93% approval for executive pay.
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