Barclays Maintains an 'Equalweight' on PNC Financial (PNC); 3Q11 EPS Review: First to Offer 2012 Guidance and It's Solid

Barclays maintains an 'Equalweight' on PNC Financial (NYSE: PNC) price target of $75.00.

Barclays analyst says, "Relative to our expectations, PNC's 3Q11 earnings beat was driven by a lower-than-modeled loan loss provision partially offset by lower than anticipated fee income. Also, while PNC stated on the announcement of its RBC USA purchase it has the option to issue up to $1.0bn in common stock to RBC to help fund the transaction, on its 3Q11 call it continues to assume it will not ultimately do so. This would result in the acquisition being immediately accretive. Additionally, we felt it offered a relatively constructive core 2012 outlook, supporting our above consensus estimate."

"Reflecting this quarter's credit driven beat, we are increasing our 2011 full-year EPS estimate by $0.09 to $6.34, which includes an increase of $0.03 in 4Q11 to $1.55...We are also increasing our 2012 EPS estimate by $0.05 to $6.35 reflecting a modestly higher net interest income assumption."

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 $51.33 yesterday.

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