PNC Financial price target raised to $165 from $160 at Deutsche Bank

Deutsche Bank analyst Matt O’Connor raised the firm’s price target on PNC Financial to $165 from $160 and keeps a Buy rating on the shares. The analyst sees three key themes for the U.S. banks in 2024: lower interest rates, which are good for bank capital, but generally bad for earnings, credit quality, which will likely be the most important theme for bank stocks whether or not there’s a credit cycle, and regulation and the political backdrop. The firm sees limited further upside to bank stocks given likely continued earnings pressure, sluggish loan growth, continued risks of a credit cycle, and as valuations are back to more reasonable levels.