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Wolfe Research Initiates Peer Perform Coverage on Company
ByAinvest
Tuesday, Jul 8, 2025 6:19 pm ET1min read
Wolfe Research Initiates Peer Perform Coverage on Company
Wolfe Research has downgraded PNC Financial (NYSE:PNC) from Outperform to Peer Perform, citing valuation concerns relative to other banks in its coverage universe. The $77.42 billion bank currently trades at a P/E ratio of 13.81, with InvestingPro data indicating the stock is in overbought territory based on RSI indicators [3].The research firm indicated that PNC shows "relatively less upside torque" compared to other Outperform-rated banks that generate higher returns. Wolfe Research established a year-end 2026 fair value range of $173-228 for PNC shares. According to InvestingPro’s comprehensive analysis, which includes 8 additional key insights available to subscribers, the stock appears overvalued at current levels [3].
The downgrade comes with a reduced recession outlook, with Wolfe Research now contemplating a 20% probability of recession versus its previous 40% estimate. This adjusted economic outlook factors into the firm’s valuation model for the bank, even as PNC maintains a solid 3.27% dividend yield and has raised dividends for 14 consecutive years [3].
Despite the rating change to a more neutral stance, Wolfe Research acknowledged PNC’s strengths, noting that it "operates a premier, low loss content commercial lending franchise." The firm maintained a positive view on PNC’s fundamental business operations. Wolfe Research projects PNC will deliver low double-digit annual earnings per share growth through 2027, suggesting continued solid financial performance despite the valuation concerns that prompted the downgrade [3].
References:
[1] https://www.investing.com/news/stock-market-news/trump-tariff-announcements-represent-mixed-news-for-markets-wolfe-research-says-4126073
[2] https://finance.yahoo.com/news/wolfe-research-upgrades-medtronic-mdt-164339563.html
[3] https://www.investing.com/news/analyst-ratings/pnc-financial-stock-rating-downgraded-by-wolfe-research-on-valuation-concerns-93CH-4122167
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