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Valued at a market cap of $69.1 billion, The PNC Financial Services Group, Inc. (PNC) operates as a diversified financial services company and provides consumer and business banking services. The Pittsburgh, Pennsylvania-based company operates through three segments: Retail Banking; Corporate & Institutional Banking; and Asset Management Group.
Shares of PNC Bank have significantly outperformed the broader market over the past 52 weeks. PNC has soared 40.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 28.1%. But, in 2024, shares of PNC gained 12.1%, lagging behind SPX’s 17.3% return on a YTD basis.
Nevertheless, zooming in further, PNC has outpaced the US Regional Banks iShares ETF’s (IAT) 29.6% gain over the past 52 weeks and 10.1% return on a YTD basis.
PNC’s outperformance over the past year is driven by its strong digital banking tools, competitive online savings rates, and effective management of operating expenses, which have attracted customers seeking reliable financial services. Moreover, the stock rose 4.7% on Jul. 16 following its better-than-expected Q2 earnings release. This was primarily driven by a rise in its fee income from investment banking and advisory services, offsetting a decline in Net Interest Income (NII).
However, for the current fiscal year, ending in December, analysts expect PNC’s EPS to decline 7.1% year over year to $13.10. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and two “Moderate Sells.”
The configuration is more bullish than three months ago, with 11 analysts suggesting a “Strong Buy.”
On Aug. 15, BofA Securities upgraded PNC’s rating to “Buy” and raised the price target to $200, noting the company’s strong forecasted annual EPS growth for the fiscal years 2025 and 2026, presenting an attractive risk/reward scenario.
The mean price target of $186.47 represents a premium of 7.4% to PNC’s current levels. The street-high price target of $209, implies a potential upside of 20.4% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
