Goldman Sachs Maintains Neutral on PNC Despite Strong Results, Cites Modest FY24 Outlook
Portfolio Pulse from Lekha Gupta
Goldman Sachs maintains a neutral rating on PNC Financial Services Group, Inc. (NYSE:PNC) despite strong Q3 results, citing a modest FY24 outlook. PNC reported a slight revenue miss but beat EPS expectations. The FY24 guidance suggests declines in net interest income, revenue, and average loans. The analyst anticipates neutral investor response and highlights concerns about credit trends and commercial real estate net charge-offs.
July 16, 2024 | 6:26 pm
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NEUTRAL IMPACT
Investors can gain exposure to PNC through the IShares U.S. Regional Banks ETF (NYSE:IAT). Given the neutral rating on PNC and modest FY24 outlook, the impact on IAT is expected to be neutral.
The neutral rating on PNC and modest FY24 outlook suggest limited short-term impact on IAT, which holds PNC among other regional banks.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Goldman Sachs maintains a neutral rating on PNC Financial Services Group, Inc. (NYSE:PNC) despite strong Q3 results, citing a modest FY24 outlook. PNC reported a slight revenue miss but beat EPS expectations. The FY24 guidance suggests declines in net interest income, revenue, and average loans. The analyst anticipates neutral investor response and highlights concerns about credit trends and commercial real estate net charge-offs.
Despite strong Q3 results, the modest FY24 outlook and concerns about credit trends and commercial real estate net charge-offs lead to a neutral rating. This suggests limited short-term price movement.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to PNC through the Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV). Given the neutral rating on PNC and modest FY24 outlook, the impact on RDIV is expected to be neutral.
The neutral rating on PNC and modest FY24 outlook suggest limited short-term impact on RDIV, which holds PNC among other high-dividend stocks.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50