Even though they rarely get them nowadays, investors want clean reports from banks and PNC Financial's (PNC)
inability to deliver them has turned into an issue when it comes to the
stock's multiples and valuation. Where investors understand that Bank
of America (BAC) still has a big mess to clean up and generally believe U.S. Bancorp (USB) management when they call an item "one time," PNC has put investors through something more like "death by paper cuts."
The
good news for the PNC bulls is that this company's credit profile is in
generally good shape and commercial loan growth has been strong. On the
bearish side, though, is persistent spread pressure, increasing
competition, and incrementally more doubt about the company's long-term
return on equity potential.
Continue reading here:
Will PNC Financial's Potential For Improvement Translate Into Real Value?
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