PNC Financial: Still Strong But Downgraded On Valuation

|
About: The PNC Financial Services Group, Inc. (PNC), Includes: XLF
by: Oguz Erkol
This article is exclusive for subscribers.
Oguz Erkol
Banks, long/short equity, portfolio strategy, medium-term horizon
Summary

PNC Financial still provides a compelling outlook for revenue growth as the bank is set for a boost in consumer lending.

Key fundamentals (growth, margins, asset quality) are likely to build a supportive case for PNC in 2017.

However, we believe the price performance indicate most of the expectations are priced in, downgrade the stock to neutral on valuation basis.

Investors pumped billions into the financial stocks following the Trump victory as we see the industry filling the valuation gap between the major indexes on a P/E multiple basis. Donald Trump's economic plan is expected