PNC Financial Upgraded by Piper Sandler Ahead of Q3 Earnings
Analysts see the regional bank's recent underperformance as a key buying opportunity before its highly anticipated earnings report next week.
Piper Sandler has issued a bullish call on PNC Financial Services (NYSE: PNC), upgrading the regional banking giant to 'Overweight' from 'Neutral' just days before its third-quarter earnings announcement. The investment firm highlighted the bank's recent stock slump as a primary catalyst for the optimistic outlook, suggesting investors could find value before the report.
The upgrade comes as PNC prepares to release its financial results on Wednesday, October 15. Piper Sandler's move reflects a belief that the market has overly punished the stock, creating an attractive entry point. According to a , the firm sees potential for a rebound catalyzed by the upcoming earnings figures.
PNC, a major player in the regional banking sector with a market capitalization of approximately $77 billion, has indeed lagged its peers. The bank's stock has declined over 6% in the past month and has remained flat year-to-date, making it one of the worst-performing large regional banks within Piper Sandler's coverage. This period of underperformance is central to the firm's thesis that the stock is poised for a reversal. In conjunction with the upgrade, Piper Sandler also raised its price target on PNC shares from $211 to $220, as .
Broader sentiment on Wall Street remains cautiously optimistic. The stock holds a 'Moderate Buy' consensus rating from analysts, with an average price target hovering around $217, which suggests a significant upside from its current trading level. This positive view is supported by other major firms, including Wells Fargo and RBC Capital, which have also maintained 'Buy' ratings on the stock. Investors will be closely watching the for management's commentary on net interest margins, loan growth, and the overall economic outlook, which will be critical in determining the stock's next move.