Business & Finance
Business and Finance
Business and Finance
Mon, February 9, 2009 Schaeffer's Street Stories: Bears Place Their Bets on Struggling PNC Financial Services
CINCINNATI--([ BUSINESS WIRE ])--PNC Financial Services (NYSE: PNC) was 1 of 5 large-cap banks to be hit this morning with a price-target cut from Morgan Stanley. The brokerage firm dropped its price target on PNC from $69 to $67, and reiterated its "overweight" rating. Morgan Stanley warned that PNC and its sector peers could face lower estimated future book values, as well as higher costs of capital.
The brokerage firm sounded cautious this morning, but Morgan Stanley's stance on PNC is wildly optimistic, compared to the average opinion on Wall Street. Zacks reports that the stock has garnered 2 times more "holds" than "buys," and the equity's average 12-month price target is just $38.99. This consensus estimate represents a premium of 19.7% to last Friday's closing price, compared to the 106% premium implied by Morgan Stanley's price target.
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