Shares of PNC Financial Services Group Inc (NYSE:PNC) were climbing in early trading on Wednesday, after the company reported strong second-quarter results.
The results came amid an exciting earnings season. Here are some key analyst takeaways.
- RBC Capital Markets analyst Gerard Cassidy reiterated an Outperform rating and lifted the price target from $155 to $184.
- Goldman Sachs analyst Richard Ramsden maintained a Neutral rating and raised the price target from $165 to $182.
Check out other analyst stock ratings.
RBC Capital Markets: Excluding one-time items, PNC Financial Services' core earnings came in at $3.30 per share, surpassing estimates of $3.07 per share, Cassidy said in a note. "Relative to our estimates, 2Q24 results primarily reflected better-than-expected net interest income, stronger noninterest income and a lower-than-expected provision for credit losses, partially offset by higher expenses," he added.
The analyst raised the earnings estimates for 2024 and 2025 from $12.70 per share to $12.88 per share and from $14.35 per share to $14.50 per share, respectively.
Goldman Sachs: Management guided to a 4% decline in 2024 net interest income, which reflect two interest rate cuts by the Federal Reserve as well as "weaker loan growth which may inflect upwards in lower rate environment," Ramsden said. "In addition, they have bought $18bn forward starting swaps locking in ~300bps higher yields vs maturities which helps fixed rate asset repricing even if long rates fall," he added.
The guidance for core expenses was revised from flat to a 1% decline in 2024, the analyst stated. "Management noted that the increase in charge-offs in the CRE office portfolio are in line with their expectations, and they continue to be adequately reserved, with credit quality stable outside of CRE."
PNC Price Action: Shares of PNC Financial Services Group had risen by 1.54% to $179.70 at the time of publication on Wednesday.
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