Feb. 12, 2010 (Baystreet.ca) --
Banking giant PNC Financial Services (PNC) saw its rating and price target boosted on Friday by analysts at Deutsche Bank.
The analyst raised its rating on PNC to "Buy" from "Hold," citing the company's recent capital raise and share price pullback. Deutsche also lifted its price target for the stock, which had closed at $51.40 U.S. on Thursday, to $57 U.S. from $45 U.S.
A Deutsche analyst noted that "PNC shares have lagged (down 13% vs. overall banks down 4% since 1/20/10)--mostly given much larger than expected dilution from repaying TARP and concern that recent pre-provision earnings (which have been strong) aren't sustainable.
"However, we believe this is a good entry point given the capital raise is done, capital levels are now strong (at 8% Tier 1 common and 9% including the unrealized BLK gain) and the valuation is attractive."
PNC Financial shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of PNC had been removed from some recommended lists back on Oct.9, when the stock was trading at $67.75 U.S. The company has a dividend yield of .78%, based on last night's closing stock price of $51.40 U.S. The stock has technical support in the $45-$47 U.S. price area. If the shares can firm up, some overhead resistance can be seen around the $55-$56 U.S. price levels. But experts would remain on the sidelines for now.
PNC Financial Services (PNC) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of five stars.
