Compass Point Raises PT On PNC To $82.50

Compass Point has raised its price target on PNC Financial Services

from $74 to $82.50 based upon results ahead of expectations. Says Compass Point, in its report, “We are increasing our price target for PNC from $74 to $82.50 as expense management is outpacing our estimates. We are reducing our 2011E EPS from $6.32 to $5.94 and increasing our 2012E EPS from $6.33 to $7.05. Our adjustment to 2011 esitmates is reflective of a slower reduction in provision based on management guidance. Our 2012 estimate increase is driven by a better 2012 net interest margin (

) outlook and lower expenses. We continue to believe PNC will generate significant amounts of excess capital which we expect to be the main driver of bank share outperformance in a low growth environment.” Compass Point is reiterating a Buy rating on the stock. PNC closed yesterday at $62.89.