This regional bank is a buy ahead of earnings next week, says Piper Sandler

Piper Sandler has upgraded PNC Financial Services to Overweight from Neutral, raising its price target to $220 from $211, implying 15.7% upside. Analyst Scott Siefers cited PNC's year-to-date underperformance despite strong fundamentals as an attractive entry point, expecting the stock to regain its historical premium valuation. The upgrade is supported by a robust third-quarter earnings outlook, a solid multi-year standalone forecast, and strategic benefits from the FirstBank acquisition, which enhances flexibility and access to low-cost deposits.

Analysis

Piper Sandler is bullish on PNC Financial Services heading into its upcoming earnings report next week. Piper Sandler analyst Scott Siefers upgraded the regional bank to overweight rating from neutral. He also raised his price target to $220 from $211, signaling upside of 15.7%. Shares of PNC have slipped 1% on the year, offering an attractive entry point for a stock that usually trades at a premium, Siefers said. PNC YTD mountain PNC YTD chart "Despite strong fundamental performance, the shares have languished. They are basically flat YTD, and PNC is the second worst performing large regional we follow," the analyst wrote. "Historically, PNC has traded closer to a one multiple premium. We see no reason that it should not sustain that premium." Siefers pointed out that PNC's fundamentals appear strong, especially heading into its third-quarter earnings report, due out before the market opens Wednesday. "Beyond our own thinking, we could have just pointed out that PNC's 3Q25 mid-Q update suggested that the company is edging toward the upper end of the ranges management had provided in July," he added. "PNC seems to have a solid stand-alone outlook into the next couple of years, too." The analyst also highlighted PNC's acquisition of FirstBank as another tailwind for the stock. This acquisition offers PNC additional flexibility, increases its scale and grows its access to low-cost deposits and a new market. PNC shares, which are down 1.4% year to date, gained 0.6% in the premarket following the upgrade. Analysts are mostly bullish PNC, with 18 of 24 rating it a buy or strong buy. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . ) Piper Sandler upgraded PNC Financial Services to an Overweight rating from Neutral, with analyst Scott Siefers raising the price target to $220 from $211, indicating a 15.7% potential upside. This upgrade is predicated on PNC's year-to-date underperformance, with shares down 1% despite strong fundamental performance, creating an attractive entry point. Siefers noted PNC is the second worst-performing large regional bank he covers, suggesting a valuation disconnect. The analyst anticipates PNC will regain its historical "one multiple premium" given robust fundamentals, particularly heading into its third-quarter earnings report next week. A mid-quarter update for Q3 suggested the company is trending towards the upper end of its July guidance ranges. Furthermore, PNC exhibits a solid stand-alone outlook for the next two years, reinforcing long-term stability. PNC's recent acquisition of FirstBank is cited as a significant tailwind, enhancing flexibility, scale, and access to low-cost deposits in new markets. This strategic move is expected to bolster future performance and support a sustained premium valuation. Following the upgrade, PNC shares saw a 0.6% gain in premarket trading, aligning with the broader analyst consensus of 18 out of 24 ratings being Buy or Strong Buy.

Key Decisions for Investors

• Investors should consider initiating or increasing exposure to PNC Financial Services, leveraging the current attractive entry point and the 15.7% implied upside from Piper Sandler's $220 price target.
• Monitor PNC's upcoming Q3 earnings report closely for confirmation of strong fundamental performance and positive mid-quarter guidance, which could act as a near-term catalyst.
• Evaluate the long-term strategic benefits of the FirstBank acquisition, as its contribution to scale, flexibility, and low-cost deposits is crucial for sustaining PNC's anticipated premium valuation.