Raymond James cuts PNC Financial stock price target on rate outlook

Raymond James revised its price target on PNC Financial Services Group shares to $255 from $275, keeping an Outperform rating for the stock. The firm raised its earnings per share estimates for the bank following third-quarter 2026 results that surpassed expectations for both core EPS and pre-provision net revenue. The guidance for 2027 net interest income indicates potential growth of approximately $1.0 billion to $1.1 billion compared to 2026.

Analysts project a 25% upside potential for the stock, although it is currently trading above its Fair Value according to InvestingPro analysis. While there are near-term net interest margin pressures and higher funding costs to consider, PNC remains on track for above-peer organic growth and attractive returns. The bank's dividend yield stands at 3.71%, and it has increased its dividend for the 16th consecutive year.

Potential challenges include additional rate hikes affecting loan demand and funding costs, as well as some credit deterioration.