Pinnacle Financial's Price Target Lowered to $104 by Stephens

Stephens has lowered its price target on Pinnacle Financial (PNFP) to $104 from $133 and maintains an Equal Weight rating. The firm has updated estimates for the pending Synovus (SNV) merger of equals, raising its FY26 operating EPS estimate to $10.35 from $8.55. The analyst believes there are merits to the combination but notes it will take time to bear out.

Stephens & Co. has revised its price target for Pinnacle Financial Partners (PNFP) to $104, a significant decrease from the previous target of $133. The firm maintains an Equal Weight rating on the stock, reflecting a cautious stance on the company's prospects [1]. The downgrade comes amidst heightened execution risks surrounding Pinnacle's pending all-stock acquisition of Synovus Financial (SNV).

Stephens has updated its estimates for the merger, raising its FY26 operating EPS estimate to $10.35 from $8.55. The analyst believes the combination holds strategic benefits but expects it to take time for these advantages to materialize. The merger is expected to close in the first quarter of 2026, pending shareholder and regulatory approvals [2].

The price target reduction reflects Stephens' equal-weighted methodology, which factors in a P/E ratio of 12.16 and a target multiple of 10x the present value of 2027 estimates. The firm's recent downgrade to Equal Weight is driven by concerns over Pinnacle's ability to successfully integrate Synovus and navigate the regulatory environment [3].

While Pinnacle Financial Partners reported strong second-quarter earnings, with a 23% year-over-year increase in adjusted earnings per share, the merger-related risks have led to a more cautious outlook from Stephens. The company's strong loan growth and expanding net interest margin have been positive factors, but the analyst's concerns about the merger's execution and regulatory compliance risks have led to the price target reduction.

References:
[1] https://www.gurufocus.com/news/3012880/pinnacle-finl-partners-pnfp-target-price-lowered-by-stephens--co--pnfp-stock-news
[2] https://www.investing.com/news/stock-market-news/pinnacle-financial-partners-outlook-revised-to-negative-by-fitch-93CH-4158306
[3] https://in.investing.com/news/analyst-ratings/stephens-lowers-pinnacle-financial-partners-stock-price-target-on-merger-93CH-4932218