Stockchase Opinions

Jenny Harrington, CEO, Gilman Hill Asset Management PNC Financial Services Group Inc PNC-N BUY ON WEAKNESS Oct 27, 2023

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.

$111.240

Stock price when the opinion was issued

Financial Services
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
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)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
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)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(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.  

PARTIAL BUY

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.

BUY

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.

SELL

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.

BUY

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

WEAK BUY

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.

BUY

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