Stephens lowers Pinnacle Financial Partners stock price target on execution risk

Investing.com - Stephens has reduced its price target on Pinnacle Financial Partners (NASDAQ:PNFP) to $97.00 from $104.00 while maintaining an Equal Weight rating. The stock, currently trading at $84.74, appears undervalued according to InvestingPro analysis, with analyst targets ranging from $95 to $130.

The firm cited heightened execution risk around leadership transition and the creation of a Category IV bank as key concerns, despite Pinnacle’s increasingly attractive relative valuation. Trading at a P/E ratio of 11.51x and near its 52-week low, the stock has maintained dividend payments for 13 consecutive years.

Pinnacle’s core pre-provision net revenue (PPNR) of $264.7 million exceeded consensus estimates by 11%, driven by stronger net interest income and core fees, particularly from BHG contributions.

End-of-period loan growth reached 8.9% on an annualized basis, slightly below consensus expectations, which raised concerns about the pro forma balance sheet and growth rate potential.

Stephens increased its 2025 earnings estimates by 6.4% due to stronger net interest income and fees, while also raising its 2026 and 2027 PPNR forecasts by 1% based on fee strength and an improved BHG outlook.

In other recent news, Pinnacle Financial Partners has been the subject of varied analyst opinions and ratings adjustments. Citi raised its price target for Pinnacle Financial Partners to $140, maintaining a Buy rating due to strong loan growth projections and positive hiring trends expected to boost growth into 2026. Conversely, both KBW and Stephens have lowered their price targets, with KBW adjusting its target to $95 and Stephens to $104, citing concerns related to the merger with Synovus Financial Corp. Stephens also downgraded the stock from Overweight to Equal Weight due to acquisition concerns.

Fitch Ratings has revised Pinnacle Financial Partners’ outlook to negative from stable, although it affirmed the company’s long and short-term issuer default ratings. This rating change follows Pinnacle’s announcement of its acquisition of Synovus, expected to finalize in the first quarter of 2026 pending approvals. Despite these mixed ratings and outlooks, Pinnacle’s merger with Synovus remains a focal point, with analysts weighing its potential impact on the company’s future performance.

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