PNC Financial Services Group (NYSE:PNC), a diversified U.S. bank based in Pittsburgh, has delivered strong fundamental performance through consistent loan growth, prudent credit management, and stable operating trends.
Piper Sandler upgraded PNC from Neutral to Overweight and raised its price forecast to $220 from $211, reflecting about 12x the firm's 2026 EPS estimate of $17.81.
Piper Sandler analysts, led by R. Scott Siefers, said the upgrade aligns with improving investor sentiment ahead of earnings season and a stronger large-bank M&A backdrop.
Also Read: PNC Financial Analysts Increase Their Forecasts After Strong Earnings
Analysts noted that PNC shares have underperformed despite solid fundamentals, remaining largely flat year-to-date and ranking among the weakest large regional banks the firm follows.
The analysts had held back due to valuation, but now see renewed opportunity following the stock's underperformance.
Piper Sandler believes PNC's near-term guidance is conservative and achievable, citing expectations for modest loan growth and higher credit costs that appear manageable.
The firm highlighted projected third quarter 2025 net charge-offs of $275–$300 million, up from $198 million in the second quarter of 2025, but consistent with PNC's history of outperforming conservative forecasts.
Looking beyond 2025, management expects steady revenue momentum, with net interest income projected to grow about 7% in 2026. Piper Sandler sees ongoing asset repricing as a multi-year tailwind supporting this growth trajectory.
The report also highlighted PNC's pending FirstBank acquisition as a strategic positive, providing immediate scale in Colorado, low-cost deposits, and cross-selling potential.
Analysts forecast PNC's 2026 EPS of $17.81, while expecting $19.10 for the fiscal year 2027.
Following share underperformance, PNC's valuation has become more attractive, trading below 11x 2026 EPS estimates and on top of peers. Historically, PNC has maintained a valuation premium, which the firm believes can return over time.
The firm cautioned that risks include potential market disruptions, asset quality deterioration, cost pressures, revenue weakness, mortgage-related expenses, or investor concern over future acquisitions.
Price Action: PNC shares were trading higher by 0.02% to $190.19 at last check Thursday.
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