PNC Financial Upgraded to “Buy” at Deutsche Bank; Valuation Looks Attractive (PNC)

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Regional banker PNC Financial Services ( PNC ) on Tuesday received a big upgrade from analysts at Deutsche Bank.

The firm boosted its rating "Hold" to "Buy" and lifted its price target from $63 to $71. That new target suggests a 13% upside to the stock's Monday closing price of $62.76.

A Deutsche Bank analyst commented, "PNC shares have underperformed by 1700bps YTD reflecting uncertainty related to purchase accounting accretion ( PAA ), lack of Basel 3 clarity and several one-time hits. However, we believe these issues have been/will be addressed. PNC recently provided a 2013 estimate for PAA (which seems conservative), we expect more clarity on the Basel 3 path when 3Q results come out, and 2H12 one timers have been telegraphed and we expect cleaner results in 2013. The stock trades at 9.5x our 2013E vs. peers at 10.4x."

PNC Financial shares were mostly flat in premarket trading Tuesday.

The Bottom Line
Shares of PNC Financial ( PNC ) have a 2.55% dividend yield, based on last night's closing stock price of $62.76. The stock has technical support in the $57-$60 price area. If the shares can firm up, we see overhead resistance around the $65-$67 price levels.

PNC Financial Services ( PNC ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: PAA , PNC

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