S&P Equity Research Upgrades Shares of PNC Financial Services Group to "Strong Buy" (5-STARS) from "Buy" (4-STARS)
May 24 2006 - 11:20AM
PR Newswire (US)
NEW YORK, May 24 /PRNewswire/ -- Standard & Poor's Equity
Research Services has upgraded its opinion on shares of PNC
Financial Services Group (NYSE: PNC; $68.89) to "Strong Buy"
(5-STARS out of 5) from "Buy" (4-STARS). Upon further analysis of
PNC's prospects, we are more confident in our view of five-year EPS
growth of 14%. Also, we think the planned deal, in which PNC's 70%
stake in BlackRock (NYSE: BLK; $133.60; 3-STARS) will be reduced as
BlackRock buys assets from Merrill Lynch (NYSE: MER; $71.40;
4-STARS), should provide substantial benefits to PNC and allow it
to focus on core businesses. In 2006, we see flat net interest
margins aided by higher earning assets and non-interest income, as
well as a better efficiency ratio. Our 2006 and 2007 EPS estimates
stay $5.04 and $5.89, respectively. Christopher B. Muir Regional
Banks Analyst Standard & Poor's Equity Research Services
Standard & Poor's Equity Research The analyst quoted above is a
Standard & Poor's Equity Analyst. He has no affiliation with
any company he covers. He has no ownership interest in any company
he covers. Standard & Poor's other affiliates may provide
services to the companies that are the subject of this report.
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