Market Overview

Why Catherine Faddis Is Bullish On PNC Financial Services


On CNBC's "Fast Money," Catherine Faddis, the CEO of Grace Capital, said PNC Financial Services Group Inc (NYSE: PNC) is fantastic for a number of reasons.

The announced deal to buy the U.S. assets of BBVA is a game-changer because it gets PNC into the Sunbelt and Texas. It also brings some cost synergies.

Faddis also likes PNC's environmental, social and governmental factors. She thinks it's a great corporate citizen. It pledged a billion dollars for low-income communities and it pledged $30 million for COVID-19 relief.

PNC's deposit franchise is another thing Faddis likes about the company. Its clients don't just deposit money with PNC, they use other services too and that is why almost half of PNC's revenue comes from fees.

Faddis thinks valuation looks attractive as it trades under a 1.2 price-to-book ratio. She also finds its 12% return on equity great. The company doubled its dividend over the last five years and it's now north of 3%. Faddis expects the dividend to grow and she would be a buyer of the stock. She's not concerned about the regulatory environment.

Guy Adami and Tim Seymour are also buyers of the stock, while Dan Nathan and Brian Kelly wouldn't buy it.


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