Standpoint Research Initiates Coverage On PNC Financial

Standpoint Research initiates coverage on PNC Financial PNC with a Buy rating and $70 PT. PNC was the highest ranking regional bank in Standpoint's Q3 S&P-500 report according to its 155-variable computer model. The shares were trading at $61 at the time, but it withheld putting out a recommendation. The shares have since dropped by 10% and the environment appears a bit less risky. This recommendation is most suited for those looking to increase portfolio beta and reduce an under-weight in Financials. If you are already overweight in this sector, Standpoint would think twice before acting on this recommendation. PNC reported a well-received Q3 on October 21. Earnings of $2.07 per share were $0.71 ahead of the $1.36 consensus. Pre-tax pre-provision earnings of $1.4 bln significantly exceeded the provision for credit losses of $.5 bln. The provision for credit losses declined to $486 mln in the third quarter compared with $823 mln in the second quarter reflecting overall improving credit migration and the impact of a second quarter provision of $109 mln associated with third quarter loan sales from the distressed assets portfolio. PNC is trading higher at $58