On Thursday, Truist Securities adjusted its outlook on Pinnacle Financial Partners (NASDAQ: NASDAQ:PNFP), increasing the price target to $101 from $87 while maintaining a Buy rating on the shares. The revision reflects a more optimistic revenue forecast following the second quarter of 2024, citing factors such as securities restructuring and consistent fee income momentum.
The Truist Securities analyst acknowledged that while the loan growth forecast may be softer, the aggressive recruitment planned for the second half of 2024 is expected to reassure investors about the bank's growth potential. The analyst expressed confidence in the stability of the bank's deposit trends, including the non-interest bearing (NIB) mix and deposit costs.
Pinnacle Financial's deposit mix, which is increasingly indexed, is anticipated to provide additional protection for net interest income (NII) in the event of a Federal Reserve easing cycle. This strategic positioning is seen as a positive move that could lead to an expansion of the bank's earnings multiple.
The firm suggests that Pinnacle Financial's stock could become more attractive to investors who are looking for banks with higher loan growth potential. The price target increase to $101 is a reflection of this potential and the bank's strategic initiatives aimed at driving growth over the coming years.
In other recent news, Pinnacle Financial Partners has seen significant developments in its leadership and financial standing. The company recently appointed Charissa Sumerlin as the new Executive Vice President and Chief Credit Officer.
This strategic management change was accompanied by noteworthy financial results, as Pinnacle Financial reported robust growth in its first-quarter earnings call for 2024. The company highlighted solid revenue growth and balance sheet expansion, targeting a loan growth of 9% to 11% for the year and raising guidance for fee revenues.
The company's performance has also been the subject of several analyst adjustments. Citi raised its price target for Pinnacle Financial to $113, maintaining a Buy rating, while Piper Sandler downgraded the bank's stock from Overweight to Neutral. Stephens maintained an Overweight rating on the stock but lowered the price target to $102.
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