Deutsche Bank Downgrades PNC Financial (PNC) to Hold

Deutsche Bank downgraded PNC Financial (NYSE: PNC) from Buy to Hold with a price target of $87.00 (from $94.00).

Analyst Matt O'Connor said, "Our BUY rating had been driven by our view that it would be more defensive as earnings risk was below peers (due to more credit leverage and potential gains from selling down its VISA stake) and the valuation was attractive. PNC had a solid 3Q on good fees, better-than-feared net interest income, and strong credit. But credit leverage has mostly played out, VISA gains seem to be reflected in 2015e (we assume $200m in our $7.39 estimate) and PNC has outperformed large regionals. For example, YTD, PNC has outperformed peers by 700bps (1100bps vs. the five big asset sensitive banks), making it the second best performing regional bank stock out of DB’s coverage of 29 banks."

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 $79.77 yesterday.

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