Pinnacle Financial Partners (PNFP) PT Raised to $100 at JPMorgan After Management Meeting

March 2, 2021 7:10 AM EST
Get Alerts PNFP Hot Sheet
Price: $91.74 -0.7%

Rating Summary:
    7 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 20 | New: 68
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JPMorgan analyst Steven Alexopoulos raised the price target on Pinnacle Financial Partners (NASDAQ: PNFP) to $100.00 (from $87.00) after meeting with CEO, Terry Turner, and CFO Harold Carpenter. The meeting confirmed that the company is very well-positioned among regional banks to continue driving solid top-line growth for many years to come and took the pace of investment to a new level in 2020, with an
annual record 90 revenue producers hired in the one year. This should allow the company to enter 2021 from a position of strength and continue the pace of strong hiring.

The analyst maintained an Overweight rating, listing 4 reasons to expect outperformance:
1) Substantial runway for organic growth opportunities not only in Atlanta but other high growth Southeast markets
2) Market share gains driving loan growth while higher borrower confidence could eventually be
another tailwind
3) Yield curve steepening should benefit fixed rate assets over time but not rushing to deploy excess liquidity
4) Hotel portfolio still an area to watch but opportunity exists to continue releasing reserves

He stated "PNFP shares trade at 13.9x 2022e EPS, or a 12% premium to peers. Although our favorable view is not contingent on the ability of PNFP to monetize its investment in BHG, with BHG proving the resiliency of its business model during the pandemic combined with the surge in valuations of private companies as well as proliferation of SPACs, the potential for BHG to exit at some point could also prove to be a significant value creation event."

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