Strong Buy on Pinnacle Financial - Analyst Blog

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Zacks Investment Research upgraded Pinnacle Financial Partners, Inc. ( PNFP ) to a Zacks Rank #1 (Strong Buy) on Jun 20, 2013.

Why the Upgrade?

Shares of Pinnacle Financial have grown 15.3% since this financial services firm reported impressive results for the first quarter of 2013. Earnings per share came in at 39 cents, way above 21 cents in the year-ago quarter and 18.2% above the Zacks Consensus Estimate of 33 cents.

Interest income grew 2.9% year over year while a decline of 30.4% was recorded in interest expense. Overall, net interest income after provision for loan losses increased 5.5% in the quarter. Talking of the non interest income and expenses, the former increased by 19.6% while the latter fell 9.4% year over year. Pre-tax income grew roughly 59.1% in the quarter.  

Exiting the quarter, Pinnacle Financial had cash and cash equivalents of $99.6 million while its loan (net of loan losses allowance) balance was approximately $3.7 billion. Total deposits were roughly $3.9 billion, including 20.2% of interest bearing deposits and 25.0% of non interest bearing deposits.

Pinnacle Financial's solid quarter results as well as positive earnings surprise in the trailing four quarters with an average of 10.2%, raise our optimism for the company's better results. The Zacks Consensus Estimate for 2013 and 2014 currently is at $1.58 and $1.69, representing an increase of 12.1% and 9.7%, respectively, in the last 90 days.

Other Stocks to Consider

Pinnacle Financial currently has an $857 million market capitalization. Other stocks that are worth a look in the industry are Ameris Bancorp ( ABCB ), Farmers Capital Bank Corporation ( FFKT ) and First M&F Corporation ( FMFC ), each has a Zacks Rank #1 (Strong Buy).



AMERIS BANCORP (ABCB): Free Stock Analysis Report

FARMERS CAP KY (FFKT): Free Stock Analysis Report

FIRST M & F CRP (FMFC): Get Free Report

PINNACLE FIN PT (PNFP): Free Stock Analysis Report

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Zacks Investment Research



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.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ABCB , FFKT , FMFC , PNFP

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