BofA downgrades PNC Financial to Underperform, says EPS defensibility priced in

BofA analyst Ebrahim Poonawala downgraded PNC Financial (PNC) to Underperform from Neutral with a price target of $160, up from $157. While Poonawala considers PNC a "well-managed and high-quality franchise," he notes that its shares trade at a premium to its two closest comps – US Bancorp (USB) and Truist Financial (TFC) – and argues that the stock’s premium valuation "more than adequately reflects" PNC’s "superior EPS defensibility." For investors looking to add exposure to regional banks with EPS defensibility, Poonawala prefers M&T Bank (MTB) and Fifth Third (FITB), he added.