Compass Point Maintains a 'Neutral' on PNC Financial (PNC); RBC Addition Positive Offset By Increased Competition in C&I Lending

May 22, 2012 9:10 AM EDT Send to a Friend
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Price: $91.71 -0.7%

Rating Summary:
    7 Buy, 18 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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Compass Point maintains a 'Neutral' on PNC Financial (NYSE: PNC) price target raised from $55 to $65.

Analyst, Mike Turner, said, "Looking forward, the integration of the RBC franchise should enable the company to gain share in the Southeast market as the recovery there is underway. With the planned addition of 200 new employees in the Corporate Banking and Asset Management segments in RBC's footprint, it is clear the company is investing in growth when many peers are forced into more conservative posturing. An acceleration of loan growth, lower funding costs from TruPs redemptions and CD repricings, as well as a reduction in core operating expenses from the acquistion will act as tailwinds in FY12/13. Alternatively, we expect the decline in net accretion income and increased competition in C&I lending will offset some of these strengths. While we are positive on the company and management's approach of investing their core businesses, we do not see enough upside to warrant a Buy rating at the current price...We are increasing our FY12/13 EPS estimates from $6.39 and $6.85 to $6.48 and $6.88, respectively."

For an analyst ratings summary and ratings history on PNC Financial click here. For more ratings news on PNC Financial click here.

Shares of PNC Financial closed at $62.26 yesterday.


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