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Investing.com - PNC Financial (NYSE:PNC) stock rose Monday after HSBC raised its price target on the bank to $219.00 from $213.00 while maintaining a Buy rating. According to InvestingPro data, PNC trades at a P/E ratio of 13.75 and appears undervalued based on its Fair Value analysis. The stock has delivered a strong 19.86% return over the past year.
The price target increase follows PNC’s announcement that it will acquire FirstBank, one of the largest privately held banks in the United States with 95 branches in Colorado and Arizona, for $4.125 billion in a deal structured as 70% stock and 30% cash. PNC, which boasts an "GOOD" Financial Health score on InvestingPro, has maintained dividend payments for 55 consecutive years and currently offers a 3.33% yield.
The transaction is expected to close in Q1 2026, subject to regulatory and shareholder approval, and will significantly enhance PNC’s presence in southwestern markets, particularly giving it the number two deposit share position in Colorado (15.4%) and the leading share in Denver.
FirstBank has approximately $27 billion in assets, $16 billion in deposits, and $16 billion in loans, which will add to PNC’s existing $559 billion in assets, $427 billion in deposits, and $326 billion in loans.
HSBC noted that the acquisition aligns with PNC’s strategy to add scale and grow nationally, highlighting that PNC has demonstrated a strong track record of integrating acquired banks, including BBVA US in 2021 and RBC’s southeast business in 2012.
In other recent news, PNC Financial Services Group reported strong second-quarter results for 2025, exceeding expectations. The company achieved an earnings per share (EPS) of $3.85, surpassing the projected $3.55. Additionally, PNC Financial reported revenue of $5.66 billion, beating the forecasted $5.61 billion. These results marked a positive earnings surprise of 8.45%. In another development, Oppenheimer upgraded PNC Financial’s stock rating from Perform to Outperform, setting a price target of $238.00. The upgrade was based on a positive growth outlook for the company. Despite PNC’s shares underperforming compared to banking sector benchmarks, the upgrade reflects a renewed confidence in its future performance. These developments highlight significant recent activities surrounding PNC Financial.
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