UPDATE: Compass Point Upgrades PNC Financial Services to Buy on Pullback

Compass Point raised its rating on PNC Financial Services PNC from Neutral to Buy and raised its price target from $59 to $61. Compass Point noted, "Despite the fact that the results of our analysis imply net interest income contraction in FY14, we believe these concerns are overly discounted following the recent pull-back. Further, we anticipate the full integration of the RBC platform, in conjunction with investments in the asset management and fee generating businesses will enable the bank to generate loan and fee income growth that should exceed peers over the course of the next two years. The stock trades cheap on a P/E basis (8.4x FY13E/9.1x FY14E) due to concerns over the burnoff of accretion income as well as over fears that the company will make another major acquisition. We believe these concerns are overdone." PNC Financial Services closed at $54.53 on Tuesday.