Compass Point Raises PT On PNC To $82.50

Compass Point has raised its price target on PNC Financial Services PNC from $74 to $82.50 based upon results ahead of expectations. Says Compass Point, in its report, “We are increasing our price target for PNC from $74 to $82.50 as expense management is outpacing our estimates. We are reducing our 2011E EPS from $6.32 to $5.94 and increasing our 2012E EPS from $6.33 to $7.05. Our adjustment to 2011 esitmates is reflective of a slower reduction in provision based on management guidance. Our 2012 estimate increase is driven by a better 2012 net interest margin (NIM) outlook and lower expenses. We continue to believe PNC will generate significant amounts of excess capital which we expect to be the main driver of bank share outperformance in a low growth environment.” Compass Point is reiterating a Buy rating on the stock. PNC closed yesterday at $62.89.