FBR Capital Reiterates an 'Outperform' on PNC Financial (PNC); Solid 1Q11 Highlights Core Business Strength
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Price: $152.30 +2.98%
Rating Summary:
15 Buy, 17 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
15 Buy, 17 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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FBR Capital reiterates an 'Outperform' on PNC Financial (NYSE: PNC), PT $80.
FBR analyst says, "We reiterate our rating and price target following 1Q11 earnings in which PNC reported EPS of $1.57, beating both the FBR estimate of $1.34 and the Street estimate of $1.38. Overall, we thought this was a solid quarter from PNC given the company's ability to still generate a strong earnings number even though loan demand remains slow, mortgage banking activity had its worst quarter in the last year, and the company reduced its stake in BlackRock. The decent operating result was driven by a slowing of repurchase-related reserving, employee incentive declines, and there was a reversal of a liability from lawsuit. This quarter highlights the strength of PNC's core franchise, whereby it can still generate strong operating numbers while other large banks are seeing their pretax, pre-provision numbers decline. On top of the core operations, PNC remains well-positioned to put capital to work via buybacks and/or accretive acquisitions. We are increasing our FY11 operating EPS estimates to $6.00 from $5.65 (maintains FY12 at $6.45)."
For more ratings news on PNC Financial click here and for the rating history of PNC Financial click here.
Shares of PNC Financial closed at $61.62 yesterday.
FBR analyst says, "We reiterate our rating and price target following 1Q11 earnings in which PNC reported EPS of $1.57, beating both the FBR estimate of $1.34 and the Street estimate of $1.38. Overall, we thought this was a solid quarter from PNC given the company's ability to still generate a strong earnings number even though loan demand remains slow, mortgage banking activity had its worst quarter in the last year, and the company reduced its stake in BlackRock. The decent operating result was driven by a slowing of repurchase-related reserving, employee incentive declines, and there was a reversal of a liability from lawsuit. This quarter highlights the strength of PNC's core franchise, whereby it can still generate strong operating numbers while other large banks are seeing their pretax, pre-provision numbers decline. On top of the core operations, PNC remains well-positioned to put capital to work via buybacks and/or accretive acquisitions. We are increasing our FY11 operating EPS estimates to $6.00 from $5.65 (maintains FY12 at $6.45)."
For more ratings news on PNC Financial click here and for the rating history of PNC Financial click here.
Shares of PNC Financial closed at $61.62 yesterday.
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