PNC Financial downgraded to Underperform from Market Perform at Keefe Bruyette

Keefe Bruyette analyst David Konrad downgraded PNC Financial to Underperform from Market Perform with a price target of $125, down from $157. The shares are trading at an "outsized premium valuation" while PNC has lower earnings visibility, the analyst tells investors in a research note. The firm believes the stock’s current 27% premium to the group is "stretched" given expectations of lower than peer returns and PNC’s higher enhanced loan-to-deposit ratio versus peers. Moreover, PNC "could be a source of funds for other high-quality super- regional banks," writes Keefe.