Jim Cramer - Mad Money
PNC Financial Services Group Inc
PNC-N
PARTIAL BUY
Apr 10, 2023
Pays a yield of 5%. The regional banks are now valued the same as the big money centers, so were overvalued before. He targets $130 for PNC as a trade.
Stockchase Research Editor: Michael O'Reilly We reiterate this Pittsburgh based bank that has over 2500 branches. We like that is has built cash reserves while aggressively reducing debt. It trades at only 1.4x book and offers a good dividend, backed by a payout ratio under 50% of cash flow. The dividend has grown for 10 consecutive years. We recommend trailing up the stop loss (from $125) to $140, looking to achieve $189 -- upside potential over 20%. Yield 3.7% (Analysts’ price target is $188.56)
Stockchase Research Editor: Michael O'Reilly We again reiterate this Pittsburgh based bank that has over 2500 branches as a TOP PICK. They are embarking on a cost saving plan to reduce branches in several store kiosks as customers opt increasingly for electronic banking. The company is prudently using cash reserves to aggressively retire debt and buy back shares. It trades at 12x earnings and 1.2x book. It offers a good dividend, backed by a payout ratio under 50% of cash flow. We recommend trailing up the stop loss (from $140) to $147, looking to achieve $186 -- upside potential over 19%. Yield 3.87% (Analysts’ price target is $185.84)
(A Top Pick Dec 27/22, Down 5.7%)Stockchase Research Editor: Michael O’Reilly
Our PAST TOP PICK with PNC has triggered its stop at $147. To remain disciplined we recommend covering the position at this time. This will result in a net investment loss of 4%, when combined with our previous buy recommendation.
Likes that they have a diversified deposit base of retail and commercial, and have only 2.7% exposure to commercial real estate. Deposits have grown, taking some business from the smaller regionals.
He ran out of patience. PNC missed on the topline, beat on the bottom in its report. Money is flowing to the big banks instead, while big regionals like PNC are stuck in no-man's land.
The regional banks have been reporting decent earnings, because net-interest margins are great and high rates are another benefit. She will buy names like PNC.
They reported an okay quarter earlier this week, beating revenues and EPS, but their guidance wasn't encouraging. It rallied when the regional banks rebounded last year. PNC isn't his favourite in this space, but owning it won't hurt you.
Pays a yield of 5%. The regional banks are now valued the same as the big money centers, so were overvalued before. He targets $130 for PNC as a trade.