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Pittsburgh, Pennsylvania-based The PNC Financial Services Group, Inc. (PNC) operates as a diversified financial services company. With a market cap of $71 billion, the company provides regional banking, wholesale banking, and asset management services nationally and in the company's primary regional markets.
Shares of PNC have underperformed the broader market over the past year. PNC has gained 11.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.5%. In 2025, PNC stock is down 7.4%, compared to the SPX’s 1.4% rise on a YTD basis.
Narrowing the focus, PNC’s underperformance is also apparent compared to the iShares U.S. Regional Banks ETF (IAT). The exchange-traded fund has gained about 11.5% over the past year. Moreover, the ETF’s 3.9% dip on a YTD basis outshine the stock’s losses over the same time frame.
PNC's recent underperformance is largely due to higher expenses and increased provisions for credit losses, which have dampened results. Additionally, a decrease in deposit balances and a spike in provision levels are causing concerns for the near future.
On Apr. 15, PNC reported its Q1 results, and its shares closed down more than 2% in the following trading session. Its revenue stood at $5.5 billion, up 6% year over year. The company’s EPS of $3.51 surpassed the consensus estimates of $3.40.
For the current fiscal year, ending in December, analysts expect PNC’s EPS to grow 8.9% to $15.15 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering PNC stock, the consensus is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration is more bullish than a month ago, with 11 analysts suggesting a “Strong Buy.”
On May 14, TD Cowen initiated coverage of PNC with a “Buy” rating and $233 price target, implying a potential upside of 30.4% from current levels.
The mean price target of $195.95 represents a 9.7% premium to PNC’s current price levels. The Street-high price target of $235 suggests a notable upside potential of 31.5%.
