Jenny Harrington, CEO, Gilman Hill Asset ManagementPNC Financial Services Group IncPNCBUY ON WEAKNESSOct 27, 2023

He expects it to reach new highs as it pays a yield of 4%.

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.

They reported a 5% earnings beat, but a tepid forecast. Still, shares rallied nearly 7% last week.

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.

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.

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.

Favourite US bank He avoids cyclical businesses. Brokerage businesses in Morgan Stanley and Goldman Sachs are very well run are more investment bank/trading firms. Theoretically, they should trade lower multiples than more diversified banks like JPMorgan. He owns 4 banks, including PNC will likely be a major consolidator given their strong balance sheet. Are well-run. he expect them to buy back shares and raise their dividend.