UPDATE: ISI Group Downgrades PNC Financial Services to Hold, Lowers PT

In a report published Tuesday, ISI Group downgraded its rating on PNC Financial Services

from Buy to Hold, and lowered its price target from $77.00 to $66.00. ISI Group noted, “We are downgrading PNC to Hold and cutting our EPS estimates. Based on more net interest margin pressure and modestly less loan growth than previously expected, we are reducing our 4Q12, 2013, and 2014 net interest income outlook by about 4%. On the back of that change, we are reducing our EPS estimates from $1.61 to $1.50 in 4Q12, from $7.00 to $6.50 in 2013, and from $7.50 to $7.00 in 2014. Our 2013 and 2014 EPS estimates are now below consensus levels of ~$6.80 and $7.30. Based on our lower EPS outlook, we are also downgrading the stock to Hold from Buy and lowering our PT to $66 from $77. Our new PT is about 10x our 2013 EPS estimate and 1.25x 2013 YE TBV. Based on our below-consensus EPS outlook and weaker core revenue outlook, we no longer think PNC will generate the PE and P/TBV expansion that we previously anticipated.” PNC Financial Services closed on Tuesday at $60.40.