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UBS said PNC Financial (NYSE:PNC) appears better positioned to benefit from an improvement in demand, as it awaits the return to broader loan growth during the second half of the year.
The brokerage upgraded PNC to Buy from Neutral on Monday and set a PT of $179, implying an upside of ~14% to last close.
The research firm said that it thinks PNC appears better positioned to benefit from an improvement in demand, as it awaits the return to broader loan growth.
UBS said that it projects loan growth of 0.1% & 4.0% in ’24 & ’25, both well above the regional peer median of -1.8% & 3.1%.
With capital levels and prior investments, the brokerage thinks that PNC positions itself for a net interest income trajectory that is relatively de-risked vs peers, as the bank can stay on offense as loan demand rebounds.
Considering that capital requirements were unchanged coming out of this year’s DFAST cycle, the bank has sufficient excess capital, strong organic capital generation, and significant run off of securities related to AOCI marks over the next 18 months, said the brokerage in a note.
Looking at Seeking Alpha’s Quant Ratings, the company possesses a Hold rating, concurring with SA analysts. Turning to the Wall Street community, the company has a Buy rating.
Shares of the company were up 0.99% at $158.06 during market hours.
PNC is set to release its second quarter results on July 16.