Thursday, January 21, 2016

Seeking Alpha: PNC Financial Still Biding Its Time

Caught up in the overall mass-selling of recent times, I wonder if PNC Financial (NYSE:PNC) also has a bit of an identity problem with investors. It's most definitely not a growth-oriented bank right now like Wells Fargo (NYSE:WFC), BB&T (NYSE:BBT), or Regions Financial (NYSE:RF), as management is taking a conservative view of lending growth and spending designed to transform the branch business model limits operating leverage. It's also not a rock-solid "come hell or high-water" story like U.S. Bancorp (NYSE:USB) where investors can rest relatively easy that the bank will always have a seat when the music stops playing.

While this almost indiscriminate sell-off has created a lot of bargains in the banking space, I'm still not all that enamored of these shares. The valuation is just okay on a relative basis and I think the company's middle-of-the-road asset sensitivity, underwriting history, and operating efficiency doesn't really argue for the stock as a must-buy.

Read the full article here:
PNC Financial Still Biding Its Time

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