UPDATE: Sterne Agee Downgrades PNC on Limited Potential Upside
In a report published Tuesday, Sterne Agee analyst Todd L. Hagerman downgraded PNC (NYSE: PNC) from Buy to Neutral, but reiterated the $80.00 price target.
In the report, Sterne Agee noted, “We are downgrading the shares of PNC to Neutral from BUY given the strong surge in the shares in recent weeks and expectations for moderating earnings growth into '14/'15. Investment spending is offsetting cost savings and we have become more cautious on the moderating spread/margin outlook, normalized commercial credit costs and expectations for rapidly slowing mortgage banking revenues. Although we don't see the shares as overly expensive, the potential upside is rather limited in our view.”
PNC closed on Monday at $77.18.
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